When giving is also receiving…
Its worth noting that some changes have been made to the treatment of trivial benefits.
As part of some of the changes in the Finance Act, HMRC have issued a revision to some of the benefits that a director can receive.
They have revised it so that a non-cash benefit can be made to a director but not as a reward for services. Whether this is a meal, gift voucher or any other sort of goods.
This benefit can be of no greater value than £50 per time and the maximum for the year is £300.
An example could be, you go to John Lewis and purchase 6 x £50 gift vouchers. This complies with the two rules set above. This can be the case for all directors in the company so equivalent to £600 for a company with 2 directors.
This has two savings, one avoids you withdrawing funds and paying tax on the dividends. Secondly, the amounts paid will gain corporation tax relief at 19%.