Trivial benefits for directors

Is there a limit on number of purchases

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With the £300 exemption, is there a limit on the number of purchases that can be made per tax year, by director, under the £50 limit per purchase e.g. is it ok for the director to make 15 separate purchases of £20 or is it be limited to 6 purchases of up to £50 per purchase?

Replies (4)

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By Duggimon
23rd Mar 2023 09:32

No, there's a per purchase limit and a total limit for the year and that's it.

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Replying to Duggimon:
By Hugo Fair
23rd Mar 2023 16:45

... but although that means 12 purchases during the FY of £25 each are within the limit, HMRC tend to apply a 'regularity' test when determining whether or not the gifts might be regarded as part of the reward for work or performance.
I don't believe there's a legislative basis for this, but HMRC follow their own rules!

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Replying to Hugo Fair:
By lionofludesch
23rd Mar 2023 18:22

Definitely best to avoid regular TBs and to link them to something in his personal life, as opposed to work.

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Replying to Hugo Fair:
By gillybean04
23rd Mar 2023 22:07

Surprisingly, I think I can answer that. Even though you didn't pose it as a question :)

If it became an implied term through custom and practice then it would be a contractual entitlement of their employment.

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