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Vanessa Coyle

Trivial Benefits

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Hi all, I am a bit confused about the tax treatment of trivial benefits.

I understand directors of close companies have a limit of £300 a year but I can't find out anywhere if the directors need to be drawing a salary or directors only taking dividends can also receive these.

If anyone can shed any light on this I would be very grateful.

Thanks

Vanessa

Parents

  • Hi Vanessa, this is an excellent question.

    In all honestly, it is not clear in the HMRC manuals whether a payroll scheme needs to be in place or not (dividends is not relevant in this situation really).

    So digging a bit deeper into the guidance, however my intuition would suggest a payroll scheme would need to be in place. 

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  • Hi Vanessa, this is an excellent question.

    In all honestly, it is not clear in the HMRC manuals whether a payroll scheme needs to be in place or not (dividends is not relevant in this situation really).

    So digging a bit deeper into the guidance, however my intuition would suggest a payroll scheme would need to be in place. 

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