Who said HMRC is the Grinch that stole Christmas?

As the holidays approach, you might be surprised to hear that you can treat yourself and your staff through the business as a tax deductible expense.

If you are a Ltd company Director, you can claim an annual event for yourself and any staff you employ as long as the cost per head doesn’t exceed £150 (including VAT).

This £150 can be used to cover costs such as accommodation, transport and food and drink and can be used against a single event or spread throughout the year.

 

Don’t forget all receipts must be retained! This is considered an exemption, not an allowance so you can’t just withdraw £150 cash from the company (nice try fella!).

Throughout the year, you can also claim ‘trivial benefits’ from your limited company. Per HMRC’s website, “You don’t have to pay tax on a benefit for your employee if all of the following apply:

it costs you £50 or less to provide

it isn’t cash or a cash voucher

it isn’t a reward for their work or performance

it isn’t in the terms of their contract”

 

Just note that you can’t claim more than £300 on trivial benefits in a tax year.

Examples of benefits could include:

  • Gift vouchers up to £50 for shops, etc
  • A gift for a special occasion e.g chocolates, flowers, etc
  • A meal out to celebrate
  • A guided tour of OnTheGo Accountants office… alright fine, I thought that was a nice gift!

If you have questions of any of above, get in touch with us today.

Seasons Greetings from all of us at OnTheGo Accountants!