Just a short blog this week as I want to tell you about something I’ve only just found out about.
I’ve just changed accountants to the very fabulous Trudi Lilley from Lilley and Co and this is one of the first things she told me to make sure I’m doing, so I’m telling everyone I see, as not many people seem to know about it.
It means that you can have up to £300 per director over the year for what I’d call “treats”!
The key thing is that each “treat” must be £50 or under, and it can’t be cash or a cash voucher. So this could be a meal out, or vouchers. I like the idea of having some shopping vouchers for Christmas!
So for a 2-director business like our, that means we can get another £600 out of the business tax free, and it’s still allowable for corporation tax.
I don’t know about you, but that makes a difference to me!
It does also apply to staff as long as:
- it cost you £50 or less to provide
- it isn’t cash or a cash voucher
- it isn’t a reward for their work or performance
- it isn’t in the terms of their contract
If you want the official version you can read the HMRC guidance about it here (I bet no one clicks on that link!)
And if your accountant hasn’t told you about it and you’re looking for a top class accountant who truly understands what it means to run a small business and will always have your back, you might want to think about moving to Trudi too!