Taking advantage of these can be a great way to boost staff morale and allow you to take money out of the business in a tax efficient way.
Until recently there was no defined limit on what was trivial spend allowed without reporting on a P11d. But then someone asked for a limit, so HMRC came up with some rules of what doesn’t need to be reported –
- If it costs you £50 or less to provide
- If it isn’t cash or a cash voucher
- If it isn’t a reward for their work or performance
- If it isn’t in the terms of their
Directors are limited to £300 / year, employees aren’t.
For director / shareholders we recommend they receive 6 x £50 vouchers during the year for their favourite shop. Just make sure it’s one which is solvent! Amazon or a supermarket can be a good shout.
The £50 vouchers could be used a Christmas treat (not bonus!) for your team. Or maybe a lunch out with them if it’s less than £50 each?
Whichever way you do it, take advantage of it. Even if you just use it for business owners, it’s £300 each tax free to spend on things you’d be buying anyway!