01/09/2026
🎁 Tax Tip Tuesday 🎁
Did you know your limited company can give tax-free gifts to staff AND directors?
Many business owners don’t realise their limited company can give staff and directors small gifts completely free of personal tax and National Insurance, while receiving corporation tax relief, thanks to “trivial benefits”.
To qualify, each gift must meet all of the following:
✅ Cost £50 or less (inc. VAT)
✅ NOT be cash or cash equivalent
✅ NOT be given as a reward for work or performance
✅ NOT be something the employee is contractually entitled to
There’s no limit on the number of trivial benefits you can give to regular employees, as long as each one meets the criteria above.
⚠️ However, if you’re a director of a company, there’s an annual cap of £300 per director per tax year.
💡 That’s why we often tell our clients to spread this out as six separate £50 vouchers across the year.
A simple, compliant way to reward you and your team while reducing the company’s tax bill at the same time.
📩 Want help building this into your business? Get in touch
👉 www.taxsure.co.uk
📧 [email protected]
📞 www.taxsure.co.uk