Trivial benefits

Accounting
1

Hi Guys,

Which account do you use for trivial benefits?

Thanks
al

2

Other income will do

3

Thanks! But isn’t this an expense to the company?

4

Is it benefit to company or you personally?

5

Actually what I mean is trivial benefits to directors. Such as a lunch etc.

https://www.gov.uk/government/publications/tax-exemption-for-trivial-benefits-in-kind-draft-guidance/tax-exemption-for-trivial-benefits-in-kind-draft-guidance

6

Sundry or entertainment will do

7

Thank you very much!

8

Does anyone know if it is the value that matters or the amount that was paid for it?

For example, if you gave a Gift Card / Gift Voucher for the value of £50 and it cost (on a receipt) £47.50 - would this be considered as the higher amount (value of Gift Card / Voucher) or the cost to the business of £47.50 as the trivial gift?

If the latter, theoretically a Gift Card of £52.63 could be given at a cost of £50.

This can occur when buying vouchers in bulk as often merchants will give a discount on volume.

9

Irrelevant. Trivial gifts to employees is £50. Director upto £300. Anything more isn’t a trivial benefit. Its the cost to the company not the value you pass it on for.

10

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