🎁 Director's Trivial Benefits Guide 2025/26

May '25 • Taxe

Did you know? Directors can receive tax-free benefits up to £300 per year!

What Qualifies as Trivial Benefits?

✅ Must cost £50 or less per item

✅ Not cash or cash vouchers

✅ Not a reward for work/performance

✅ Not in employment contract

Perfect Examples:

🎄 Christmas gifts

🎂 Birthday presents

🌺 Get well soon flowers

🎫 Cinema tickets

🛍️ Shopping vouchers (not cash convertible)

Key Rules for Directors:

• Annual limit: £300

• Each benefit must be £50 or less

• Close company directors only

• Includes benefits to family members

• Must keep clear records

⚠️ Important Don'ts:

• Don't split larger items into £50 portions

• Don't give cash or cash equivalents

• Don't use as performance rewards

• Don't exceed £300 annual cap

• Don't forget to document everything

💡 Pro Tips:

• Spread benefits throughout the year

• Keep all receipts

• Record dates and occasions

• Document business purpose

• Track running total

📋 Required Records:

• Cost of each benefit

• Date provided

• Description of benefit

• Recipient details

• Running annual total

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