Fancy £600 tax free?
One of the most underused perks of being a company director is the ability to award directors with an annual £300 ‘trivial benefit’.
To get £600 – you draw £300 before April 5th – and £300 after April 5th and purchase a retail gift card with the funds. John Lewis, Selfridges or Tesco – whatever takes your fancy. That makes a total of £600 tax free over two days.
If your wife or husband is a company director, they can also have the perk. Meaning that, as a family, you can collect £1200 tax free!
This tax perk is because HMRC considers it acceptable to reward directors with a ‘trivial gift’ up to the value of £300 each, per tax year.
For more details on how to do this correctly and in accordance with current HMRC rules speak to one of our tax team.
