Employee Benefits Christmas is Coming

2020 has certainly been one of those years that you will certainly remember. So why not use this small tip to make it memorable for your employees and set it as a recurring reminder for each Christmas.

How to Buy £300 of Wine through your limited company.

Tax on trivial benefits is a little used piece of legislation that can save your company corporation tax and give you as director or your team members a treat/benefit that at this time of year would be extremely welcome. For the full Inland Revenue guidance please click here

To qualify it must:

• Cost you £50 or less to provide
• Isn’t cash or a voucher exchangeable for cash
• Isn’t a reward for work or performance
• Isn’t contractual or deemed to be contractual

The list/choice is endless……a meal (after lockdown), a local business voucher, a bunch of flowers, a Hamper…………………

At this time it could also be a good way to help support local small businesses.

Read more about Company Accounts

If you meet the above 4 points there is no National Insurance or tax implications and the expense comes off your taxable profits – WIN WIN

There is also no limit to the number of times a year you can provide these to team members, however please be careful not to set this in a pattern i.e. every Friday as it may then get caught with the contractual condition.

You as a director can also benefit from the same rules but you have a limit of £300 a year subject to the same rules above.

In your accounts post these items to sundry expenses and we will make sure they get tax relief.

Enjoy your wine, hamper, flowers or whatever you choose to buy and think of the tax saving you are making.

If you have any queries on this please do not hesitate to contact us on 01942322767 or info@mcgintydemack.co.uk

Please also feel free to share this with anyone in business who you think might find it beneficial.