As a Director, you might find yourself wondering what perks you can enjoy at Christmas time. While employees may receive bonuses and gifts, as a Director and shareholder, your options can seem more limited, particularly when dividends attract additional tax.

The good news is that there are still tax-efficient ways to reward yourself, including HMRC-approved trivial benefits. Let’s explore how you can make the most of your business this festive season and beyond.

Trivial Benefits for Directors

Trivial benefits aren’t just for employees - Directors are employees too and can take advantage of this tax-efficient option.

• What Is a Trivial Benefit?
  A trivial benefit is a perk valued at £50 or less (including VAT) that is not subject to Income Tax or National Insurance. Examples include:
  • A High Street voucher
  • A meal out
  • Small festive gifts
• Christmas Perks for Directors:
  If you and your spouse are both Directors, you could enjoy a Christmas meal together. As long as the total cost stays below £100 (£50 per person), the expense qualifies as a trivial benefit and can be put through the business.

Not Just for Christmas

Trivial benefits aren’t limited to the festive season, you’re allowed up to six events per year. This means you can use the same allowance for other occasions, such as:

• Anniversaries
• Birthdays
• Celebratory meals

For example, if you decide to treat yourselves to a meal for your wedding anniversary, as long as the cost stays under £50 per head, HMRC will allow it as a business expense.

Why Use Trivial Benefits?

Taking advantage of trivial benefits is a simple, tax-efficient way to enjoy small perks from your business. They don’t affect your tax bill or your company’s National Insurance contributions, making them a win-win option.

Get the Business You Want

If you’re unsure how to structure benefits or want to explore other ways to maximise your position as a Director, we’re here to help.

At Carthy Accountants, we specialise in helping Directors get the most from their businesses while staying compliant with HMRC rules. Get in touch today to discuss your options.

At Carthy Accountants, we’re Helping You Get the Business You Want.