Treat yourself to £300 of TAX-FREE wine, beer & gifts!

Enjoy Tax-Free booze!

Let’s face it. Things are tough for business owners right now!

Treat yourself or your family to tax-free wine or gifts, courtesy of HMRC's Trivial Benefits Exemption.

 As a director of a company, the exemption allows you to receive occasional, individual ‘benefits’ of £50 or less, totalling a maximum of £300 each year. These benefits can be purchased for members of your household too.

A benefit could include wine, gift vouchers, flowers, jewellery, electronic items or perhaps video games for the kids.

As with all things relating to tax, there are rules, but these are pretty simple to follow.

• Each benefit must not exceed £50 (including VAT).

• The benefit must not be cash or a cash voucher. However, gift vouchers for supermarkets and shops are allowed.

• The benefit must not be a contractual obligation or a recognition reward. Benefits should be awarded perhaps because it’s Christmas, a birthday or just because the sun is shining! If a benefit is provided because you worked late, completed a specific project or have worked hard, etc, then this exemption is not allowed.

• If a Husband and Wife are both directors of the same company, they can both claim £300 each.

• If you are a director of more than one company, you can receive £300 of trivial benefits from each company.

• Benefits can be provided to members of your household, including your spouse and children. The benefits they receive count towards your £300.

The £50 trivial benefits exemption can also be applied to gifts provided to employees.

Full details regarding Trivial Exemptions can be found on HMRC’s website.

As always, please double-check with your accountant that this benefit applies to your individual circumstances, as other rules may apply.