Trivial Benefits are gifts, or benefits, given to employees of a Limited Company that have a value of up to £50. There are several conditions applied to them:
For directors of limited companies, the amount is capped at £300 per tax year.
Trivial Benefits do not need to be declared in a P11d, or indeed reported to HMRC at all.
Some examples of Trivial Benefits:
Some examples of how we have provided Trivial Benefits at Seed:
We recommend setting up two Trivial Benefit codes in your Chart of Accounts to keep them separate from anything else. One code for employees and another for directors. This enables you to claim the VAT back easily, and also keep an eye on the amounts paid to directors.