Although the tax and NI exemption for trivial benefits was introduced over 3 years ago, there are still few directors taking advantage of what is essentially a free give away.
So how can you make the most of this offer?
The important thing to remember is that this cannot be used as a substitute for salary, bonuses or another form of earnings, as it only applies to benefits that are not a reward for work.
The legislation which was introduced in 2016 caps the exempt amount to £300 per year for directors. This may not seem worth much, however, you can save yourself and your company up to £182 in tax and NI per director shareholder, per year.
The exemption applies to any benefits other than cash or cash vouchers, as long as each one does not cost more than £50 (Including any delivery or postage costs). Your options are endless — you can treat yourself a bottle of wine, a concert or a new pair of shoes.
The easiest way to ensure you get maximum benefit is for your company to buy 6 £50 vouchers for your favourite store, and then give them to you on six separate occasions — you are then free to use them at the time, or save them for a bigger spend.
For detailed information on the qualifying conditions, please see: http://help.no-worries.co.uk/en/articles/503611-trivial-benefits-in-kind