Share this content
0
771

Employee Gifts and Trivial Benefits

Are employee gifts and directors gifts (up to the maximum of £300 ) deductible for corporation tax if they are not entertaining eg clothes vouchers for example .

Any help would be great please ,also if they are allowable where can I find this in HMRC guidance .

Thanks

 

Replies

Please login or register to join the discussion.

By mrme89
27th Jul 2017 10:11

If you provide clothing vouchers, it'll be classed as earnings for class 1 NIC.

Thanks (2)
avatar
By MelN
27th Jul 2017 10:14

I don't think so since this comes into the new trivial benefits rules as long as the gift is not a cash voucher and is less than £50 and is a true gift not a reward for services .See HMRC Tax on trivial benefits there would be no reporting requirement for this on a P11D .
What I wish to know is would this be deductible in the accounts for corporation tax purposes .

Thanks (0)
avatar
By MJShone
27th Jul 2017 12:30

Yes - they're deductible for corporation tax because they simply form part of an employee's remuneration.

Thanks (1)
27th Jul 2017 12:36

All you need is an excuse to celebrate.

Birthdays, anniversaries, Down winning a game for first time in two years, baby being born, wedding, divorce, whatever.

Definitely allowable against Corporation Tax.

If they'd not tried to assess cups of tea as benefits in kind, we wouldn't have had this massive own goal of largesse.

Thanks (1)
avatar
By MelN
27th Jul 2017 13:52

Thankyou that is what I was hoping to hear but does anyone know where I can find this on HMRC website ?

Thanks (0)
to MelN
27th Jul 2017 13:58

HMRC no longer have a website. They used to have a very good one, but then they took to hiding everything on .Gov.UK.

Thanks (2)
avatar
28th Jul 2017 20:49

Check out the following:

https://www.gov.uk/expenses-and-benefits-trivial-benefits

It is their guide - have not found the legislation to support it yet. Legislation trumps HMRC guidance.

Dave

Thanks (1)
avatar
to D V Fields
10th Aug 2017 10:27

D V Fields wrote:

It is their guide - have not found the legislation to support it yet.

Dave


s323A(9): "Condition D is that the benefit is not provided in recognition of particular services" v HMRC guidance: "it isn’t a reward for their work or performance"

Absent the word "particular" and I would say HMRC's interpretation was fair. Is HMRC ignoring "particular"?

Thanks (0)
avatar
10th Aug 2017 09:35

I'm interested to know if employer payments for private GP appointments (costing less than £50) would be exempt under the 2016 trivial benefits rule? Every example I've seen relates to gifts and entertaining but I can't see anything that indicates this type of medical expense would be a problem. Any comments/thoughts appreciated.

Thanks (0)
Share this content