Trivial Benefits

[Newchodge]

A trivial benefit cannot relate to an expense that exceeds £50.

Can 2 directors have a (non-working) meal that costs £80 and charge it as a trivial benefit of £40 each?

 

[MyAccountantOnline]

A trivial benefit cannot relate to an expense that exceeds £50.

Can 2 directors have a (non-working) meal that costs £80 and charge it as a trivial benefit of £40 each?

No - its failed on the first criteria as the cost to the employer is more than £50.

Tax on trivial benefits

Which small or 'trivial' benefits employers must pay tax and National Insurance on, and when to report them to HM Revenue and Customs (HMRC)

www.gov.uk

 

[UK Contractor Accountant]

get two separate receipts

 

[Newchodge]

No - its failed on the first criteria as the cost to the employer is more than £50.

Tax on trivial benefits

Which small or 'trivial' benefits employers must pay tax and National Insurance on, and when to report them to HM Revenue and Customs (HMRC)

www.gov.uk

Even though the cost to the employeris less than £50 per head?

 

[MyAccountantOnline]

Even though the cost to the employeris less than £50 per head?

It's certainly how I interpret it - it must cost the employer £50 or less to provide.

When looking at trivial benefits no reference is made to the cost per head (as is done for example with an annual event) it's the total cost to the employer.

 

[ElyseBurnsHill]

Yes, you can:

"The cost of providing the benefit to each employee and not the overall cost to the employer determines whether the benefit can be treated as a trivial benefit. So, a benefit costing up to £50 per employee whether provided to one or more employees can be treated as trivial."

Source: Employment Income Manual - EIM21865

 

[Newchodge]

Yes, you can:

"The cost of providing the benefit to each employee and not the overall cost to the employer determines whether the benefit can be treated as a trivial benefit. So, a benefit costing up to £50 per employee whether provided to one or more employees can be treated as trivial."

Source: Employment Income Manual - EIM21865

Thank you.

 

[UK Contractor Accountant]

323A(4) Condition B is that the benefit cost of the benefit does not exceed £50.

323A(5) In this section “benefit cost”, in relation to a benefit, means–

(a)the cost of providing the benefit, or

(b)if the benefit is provided to more than one person and the nature of the benefit or the scale of its provision means it is impracticable to calculate the cost of providing it to each person to whom it is provided, the average cost per person of providing the benefit.

323A(6) For the purposes of subsection (5)(b), the average cost per person of providing a benefit is found by dividing the total cost of providing the benefit by the number of persons to whom the benefit is provided.

 

[UKSBD]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

 

[UK Contractor Accountant]

Did one have a steak meal + bottle of red wine with the other just a salad + soft drink

 

[MyAccountantOnline]

323A(4) Condition B is that the benefit cost of the benefit does not exceed £50.

323A(5) In this section “benefit cost”, in relation to a benefit, means–

(a)the cost of providing the benefit, or

(b)if the benefit is provided to more than one person and the nature of the benefit or the scale of its provision means it is impracticable to calculate the cost of providing it to each person to whom it is provided, the average cost per person of providing the benefit.

323A(6) For the purposes of subsection (5)(b), the average cost per person of providing a benefit is found by dividing the total cost of providing the benefit by the number of persons to whom the benefit is provided.

Thank you @UK Contractor Accountant

 

[ElyseBurnsHill]

323A(4) Condition B is that the benefit cost of the benefit does not exceed £50.

323A(5) In this section “benefit cost”, in relation to a benefit, means–

(a)the cost of providing the benefit, or

(b)if the benefit is provided to more than one person and the nature of the benefit or the scale of its provision means it is impracticable to calculate the cost of providing it to each person to whom it is provided, the average cost per person of providing the benefit.

323A(6) For the purposes of subsection (5)(b), the average cost per person of providing a benefit is found by dividing the total cost of providing the benefit by the number of persons to whom the benefit is provided.

What is your conclusion here? I'm not sure if you agree or disagree with my conclusion! I can't see anything that changes my mind, so I assume you're agreeing?

 

[ElyseBurnsHill]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

I don't believe so

 

[UK Contractor Accountant]

What is your conclusion here? I'm not sure if you agree or disagree with my conclusion! I can't see anything that changes my mind, so I assume you're agreeing?

yes agree - quoted the actual legislation rather than HMRC's Manual which is "their" interpretation of what they think it means which is not always entirely accurate

 

[UK Contractor Accountant]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

other than their health - no.

 

[MyAccountantOnline]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

No but make sure all of the conditions for a trivial benefit are met including it not being a reward for performance or work done.

 

[DontAsk]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

So long as they are not bought with a gift card that is topped up when the first £50 is spent.

And the benefit cannot be cash so the company would have to buy the food, not re-imburse the cost.

This advice is worth what you paid for it

 

[UKSBD]

Fish and chips tonight

Edit to add. Might even by my wife some

Edit again: I should have said - My company might even buy my wife some.

 

[japancool]

Is there anything to stop an employed director getting £300 worth of takeaways a year paid for by the company (provided they are all under £50)?

Heart disease?

 

[Newchodge]

Did one have a steak meal + bottle of red wine with the other just a salad + soft drink

We live in the north east of England. I had salmon and prawns in a white wine sauce, he had lamb chops in mint sauce, cheesecake betwwen us, 1 bottle of wine and a bottle of beer, just under £70 before the tip. I say this for the benefit of whoever on here spent £120 for 2 at zizzis.

 

[fisicx]

I say this for the benefit of whoever on here spent £120 for 2 at zizzis.

Wait until you get to London next month….