Trying not to bore you as we approach the business end of the year so here is a quick Christmas give-away for you…
With cost of living hikes and general doom and gloom on the high street, don’t forget to take advantage of the trivial benefit rules. These allow you to provide a non-cash benefit to your employees as long as it’s not on HMRC’s naughty list and be advised, they’re checking it once, they’re checking it twice…
Naughty (things it can’t be)
- a right under an employment contract,
- a reward for work or performance,
- cash and
- the value of each discrete benefit cannot exceed £50 per employee.
Nice (things it can be)
- a retail voucher (non-exchangeable for cash), meal out, food, wine, chocolate, flour, cotton, petrol, milk, turkey, pyjamas, bananas, yoga classes (I am going to stop now)
- tax and NIC-free,
- ignored for the purposes of P11D and payroll and
- given as many times as the employer chooses to (no limit).
It does include owner/directors (as well as arms-length employees) however they are subject to an annual cap of £300 per director.
That’s it – I have left my best for last. Have a fantastic Christmas from all of us here at Pay Academy. See you in 2023.