Owner managed businesses (OMBs) can provide small benefits (≤ £50) to their directors and family members without incurring income tax and national insurance liabilities, providing they meet certain conditions.
This means that, as a director / shareholder of your own business, your company could give you a £50 gift voucher with no PAYE implications. For directors and office holders of OMBs, the annual exempt limit for trivial benefits is £300. This limit includes family or household members.
The fifth condition only applies to directors and office holders of companies that are controlled by 5 or fewer persons and so the rule applies to benefits given to non-director employees within a business without the annual limit.
If you have not taken advantage of these rules previously, then you may wish to consider doing so before the end of the tax year. The numbers involved are reasonably small, but opportunities to save tax are rare, so why look a gift horse in the mouth?
The information in this article is believed to be factually correct at the time of writing and publication, but is not intended to constitute advice. No liability is accepted for any loss howsoever arising as a result of the contents of this article. Specific advice should be sought before entering into, or refraining from entering into any transaction.