There is, from 6 April 2016, a statutory exemption in place for trivial benefits meaning that there are no reporting requirements and no tax or NIC to pay. There is no limit generally on the number of trivial benefits an employee can receive. However, where the company which is a close company, and the person receiving the benefit is a director or office-holder, an annual cap of 拢300 per person per tax year applies.
There are a number of conditions for a benefit to qualify for the trivial benefit exemption. It must:
not be in the form of cash or a cash voucher (see the Vouchers guidance note)
Residential property and capital allowancesResidential property 鈥� plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a
Classes of NIC and who pays themClass 1 NICClass 1 NIC is payable on earnings paid to an employed worker which derive from, or are treated as deriving from, an employed earner鈥檚 employment in the UK. There are two kinds of Class 1 NIC, primary contributions for which the employee is liable and
Bare trusts 鈥� income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax