16/10/2026
💷 Limited company directors
Did you know you could receive up to £300 a year in tax-free benefits?
It's one of those smaller tax allowances that can easily get overlooked!
Under HMRC's Trivial Benefits rules, directors of close limited companies can receive up to £300 worth of qualifying benefits each tax year, without paying Income Tax or National Insurance on them.
For example, your company could provide six separate £50 gifts throughout the year.
These could include:
🎁 Amazon or other qualifying shopping gift vouchers
🍫 Chocolates or hampers
🎉 Birthday or Christmas gifts
But there are a few important rules:
✅ Each individual benefit must cost no more than £50.
✅ It cannot be cash or a cash voucher.
✅ It must not be a reward for your work or performance.
✅ It must not be a contractual entitlement.
✅ The total exempt amount for a director of a close company is capped at £300 per tax year.
And remember, this isn't an additional £300 salary or cash bonus. It's a tax exemption for qualifying non-cash benefits.
It's a relatively small allowance, but good tax planning is often about making use of the little things too.
💬 Were you aware of the £300 trivial benefits allowance? Comment below ⬇️