Smart New Year Benefits
Today we share some information about giving Smart New Year Benefits.
As a new decade emerges, why not take advantage of this smart and tax efficient way of rewarding employees with Smart Benefits?
You will not be required to pay tax or national insurance on a benefit to your employees if all the following criteria apply:
- The benefit cost you £50 or less to provide;
- It is neither a cash or a cash voucher;
- The reward is not for work performance; and
- The perk is not in the terms of their contract.
There is no limit to the number of trivial benefits you can give to an employee. However, you may have to pay tax and national insurance on any benefits that do not meet all of the above criteria. Plus, should the benefit exceed £50, the whole amount would be taxable.
Directors of ‘close’ companies
If you’re the director of a ‘close’ company (a limited company with 5 or fewer shareholders) you can also receive trivial benefits with the same criteria as above, however the total of all trivial benefits cannot exceed £300 in any tax year.
Well worth taking advantage of? (Thanks to RRL Cornwall for this advice.)
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