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Can a director have £300 trivial benefit in one go

Can a director have £300 trivial benefit in one go or do they need to be split into 6 £50 benefits

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I know a director of a close company can have £300 trivial benefits for the year, but are these still resticted to each one being less than £50, or can they receive the full £300 trivial benefit in one go?

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By pauld
20th Oct 2021 15:51

£50 a throw.

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Replying to pauld:
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By Paul Crowley
20th Oct 2021 16:13

+1
Paid for by company, £50 or less
£50.01 is fully taxable, Do not think you knock off £50

Company cannot reimburse the director for something he bought

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Replying to Paul Crowley:
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By pauld
20th Oct 2021 16:39

Paul - I was not aware that the TVB cannot be claimed where the company reimburses director for something purchased personally. Any pointers were I can see this exclusion?

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Replying to pauld:
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By David Ex
20th Oct 2021 16:58

pauld wrote:

Any pointers were I can see this exclusion?

HMRC Employment Income Manual and the legislation.

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Replying to David Ex:
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By Hugo Fair
20th Oct 2021 17:51

Strictly speaking I can't see anything that directly states that scenario as being excluded ... but it definitely is, on the basis that a Trivial Benefit:
a) is only even potentially in point where an employer provides a benefit to its employee; and
b) that, amongst the conditions needing to be satisfied, "the benefit is not cash or a cash voucher".

So, if "the company reimburses director for something purchased personally" ... then the item itself is not being provided by the employer and, worse, what is being provided is cash (and so taxable).

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Replying to Hugo Fair:
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By David Ex
20th Oct 2021 20:35

Hugo Fair wrote:

So, if "the company reimburses director for something purchased personally" ... then the item itself is not being provided by the employer and, worse, what is being provided is cash (and so taxable).

Haven’t read the full guidance of the legislation but I agree with your comment. The company providing a benefit seems different from the company pays the director for something he/she bought for themself.

I know tax legislation isn’t necessarily that simple but this is a glorified concession.

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Replying to Paul Crowley:
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By Hugo Fair
20th Oct 2021 17:54

Agree ... there are two 'caps':
* £50 per item; and
* (for close company directors) £300 per annum.

The first applies every time, whereas the second only on a cumulative basis.

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By ireallyshouldknowthisbut
20th Oct 2021 16:19

You cant buy a set either.

So you cant have 6 bottles of wine for £45.

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Replying to ireallyshouldknowthisbut:
ALISK
By atleastisoundknowledgable...
20th Oct 2021 16:56

But you can have 6 x £50 Starbucks vouchers, which can be used to pay for claimable/deductible subsistence and so reimbursed by the company (Ed. Is that re-reimbursed? imbursed & reimbursed?)

Company pays £600, CT deductible, you get £300 worth of coffee and £300 cash. Everyone’s a winner

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Replying to atleastisoundknowledgable...:
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By Bobbo
20th Oct 2021 17:45

atleastisoundknowledgable... wrote:

But you can have 6 x £50 Starbucks vouchers, which can be used to pay for claimable/deductible subsistence and so reimbursed by the company (Ed. Is that re-reimbursed? imbursed & reimbursed?)

Company pays £600, CT deductible, you get £300 worth of coffee and £300 cash. Everyone’s a winner

Can you claim the reimbursement if it hasn't cost you actual money?

Thinking back to the time away on an audit I got a Subway sandwich for lunch but it was free due to use of loyalty points. Didn't claim it. Should I be submitting a belated expense claim for about £6???

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Replying to Bobbo:
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By Tax Dragon
21st Oct 2021 13:33

ALISK's technical analysis to which you respond lacks robustness, IMHO. (Actually it lacks credibility, but I'm coming off the back of a ban so I have to watch my words a bit.)

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Replying to ireallyshouldknowthisbut:
ALISK
By atleastisoundknowledgable...
20th Oct 2021 16:59

ireallyshouldknowthisbut wrote:

You cant buy a set either.

So you cant have 6 bottles of wine for £45.

Is that 6 bottles @ £45 each =£270, or 6 bottles for £45 total? Presumably the former, but if you bought a £45 bottle 6 times it would be ok?

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Replying to atleastisoundknowledgable...:
By ireallyshouldknowthisbut
20th Oct 2021 17:24

6 bottles for £45 each in one order you cant do.

6 bottles for £45 each on 6 different occasions you can.

I personally don't spend £45 on a bottle of wine, but the maths was simpler. I am more a £10-15 type of chap.

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RLI
By lionofludesch
20th Oct 2021 17:00

Vouchers - they're the future.

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RLI
By lionofludesch
20th Oct 2021 17:01

.

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Replying to lionofludesch:
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By Hugo Fair
20th Oct 2021 17:38

So long, of course, as they can't be "converted into cash".

Although I've often wondered about M&S vouchers where you could (and possibly still can?) use them to buy clothing, which you then return (in a separate queue) for a full refund.
Or back in the freewheeling '80s, where big company execs sometimes received (company-purchased) first-class airline tickets ... which they then exchanged (via the airline) for club-class - and pocketed the difference personally!

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