Love (and tax relief) is in the air. With Valentine’s Day just around the corner, are you struggling to find a gift for that special someone and save a bit of money? There’s certainly nothing wrong with being amorous and frugal in our eyes! And as a limited company director, your Valentine’s gift can be classed as a trivial benefit, meaning you can enjoy tax relief on it.
What does this mean?
Your limited company can provide employees and directors with these ‘trivial benefits’, which cost up to £50 a time, with no tax or National Insurance implications and you don’t need to inform HMRC. There’s no limit on the number of ‘benefits’ provide, just as long as they do not exceed £50 at a time or £300 in total over the year. If the benefit is provided to a special someone who’s employee, it will go towards your £300 per tax year. But if your Valentine is also an employee of the company, they’ll have £300 of their own.
So what does £50 get you in this day and age? We’ve pulled together some tax-free Valentine’s Day ideas. And don’t worry; we won’t tell if you don’t!
A romantic meal for two
If you’re not into present-giving, a candlelit dinner for two could be just what you and your partner need this Valentine’s Day. You can find restaurants near you and book a table online here.
Chocolate and roses
A classic gesture of romance and a staple for Valentine’s Day – a gift like flowers and chocolates can also be classed as a trivial benefit for a special occasion providing that the amount doesn’t exceed £50. There are plenty of options online and if you’ve left it until the last minute, most companies will offer a next day delivery service.
A gift voucher
If you’re still unsure after searching for the perfect gift, a gift voucher could be the ideal solution. Providing that you’re not giving your Valentine money or cash vouchers which can be exchanged for cash, you can still claim relief.
An experience day
It’s good news that new trivial benefits rules means you can now claim for the cost of entertainment. If you’re short of inspiration, there are plenty of websites which allow you to find events based on your location, budget and interests. Groupon is a good place to start if you’re on the hunt for something special.
The perfect partnership
At Nixon Williams, we understand that the rules surrounding tax are a little bit like a relationship: they aren’t always easy to understand, can be extremely complicated and finding the right solution can be a struggle. That’s why our team of experts have played Cupid and pulled together a number of contractor guides with all of the information you need.
Unfortunately, this is only for tax. As for your Valentine’s Day preparations, we’ll leave that one with you.