If I’m a director can I buy myself gifts from my Limited company?
My mate says as I’m a director I can buy myself gifts from my Limited company…
You work hard for your company and feel like you deserve to buy yourself a treat. The good news is, yes you can! The bad news is, there are rules and limits.
Under the Trivial benefit rules, an employer can provide gifts such as a bunch of flowers, box of chocolates, meal out or even alcohol, without having to pay Tax or National insurance on it. You also receive Corporation Tax relief on the expense!
Here are the rules:
• Must cost less than £50 each time
• Can’t be cash or vouchers (gift cards are allowed)
• Can’t be a contractual obligation or recognition for good performance
So, I can’t buy the treats for good performance?
Sadly no, you can’t go to the shops and buy champagne to recognise the great work you and your staff have done as this would fall under the recognition of a service performed rule but you can say “hey it’s Friday who wants a glass?”
Can Directors also benefit from the trivial benefits?
Yes, you can but you can’t receive trivial benefits worth more than £300 in a tax year if you’re the director of a close company. A close Company is run by 5 or less shareholders (other rules apply).
This limit also applies to benefits being provided to members of your family or household.
Can I give gifts to members of my family or household?
If the individual is not an employee or office holder of the company, the cost is apportioned between the family members who are office holders /directors and is allocated against their £300 exempt limit.
If you have any questions feel free to contact us: