How many of your accountants for IT contractors and micro businesses that have a close company have told you about trivial benefits. Did you know that if you or your family members are directors or employees of a closed company, you can each withdraw up to £300 per tax year as trivial benefits?
So, for example if you are an IT contractor and you operate through your limited company. You have your wife as an employee or in any other role in your company. Now each of you will be eligible for trivial benefits of £300. That is a total of 600 pounds saved per tax year between both of you.
Isn’t it cool. Now you have some extra benefits from your company and little less tax to pay to HMRC. And now you have an extra reason to remember your or your partner’s birthday or other important days. And what more, you can splash out gifts from your company. Yet another benefit or running your own business.
The only catch that you need to keep in mind is you cannot take it out as cash or cash vouchers. It should be only be gifts or gift cards. So, IT contractors get ready for some gifts from your company this Christmas.
If you have any queries related to taking out trivial benefits, get in touch with Whizzy accountancy. We are always willing to share our knowledge to small businesses looking for better value for their money.