Quids and Quills

accountancy for authors

New tax free perks for limited companies

turkeyDid you know that HMRC brought in new rules for the 2016/17 tax year for limited companies in relation to ‘trivial benefits’.

This allows ‘close’ limited companies to provide directors with up to £300 of tax free perks / gifts for the tax year.

There is a cap on each benefit of £50.

The £300 annual cap for the tax year applies to each director, so a husband and wife limited company will have £600 in total (assuming both are directors/company secretary).

These figures are inclusive of VAT and be aware that a trivial benefit cannot be cash or a cash voucher (a voucher which can be exchanged for cash).

For example, your limited company could provide you with a turkey at Christmas – not only would this come out of your companies pocket rather than your own, your company would also get 20% corporation tax relief on the cost!

 

Credit to: John Falcon, JF Financial

Tax Planning Guide for Limited Company Freelancers and Contractors

 

 

star-paleBemused by all the rules? Nervous of accounts and tax? Need another pair of hands? 

Contact Quids & Quills and ask if I can help.

Advertisements

Single Post Navigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: