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