Common perks with no additional accountancy fees or tax to pay
Office Canteen
Alternative account code = office costs, office supplies, office supplies and maintenance
Business owner & employees
Must be available to everyone
Eat in the office
Must be reasonable
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? NO
Subsistence
Alternative account code = travel and subsistence, travel food, accommodation and meals
Business owner & employees
Temporary workplace - in line with when you can claim for travel
Business purposes - can’t be for a dual purpose
Not normal food shop, only for food purchased away from home
Can claim fixed rate instead of receipts (depending on hours away and country)
Must be reasonable
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? NO
Trivial benefits
Up to £50 gross per gift per day
Cannot be:
Expected (e.g. we go to the pub every Friday) - must be random
Performance related
Exchanged for cash
Unlimited for employees
Directors can only receive up to £300 per tax year
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? NO
Annual parties
Annual events
Christmas Party
Summer BBQ
Up to £150 gross per year, per person - this is not an allowance, if the cost for the party exceeds this amount then none is claimable
Employees can bring a partner with them
Available to all employees
Corporation tax deductible? YES
VAT claimable? YES/NO (VAT can be claimed for employees but not for their plus ones)
Benefit in kind? NO
Business entertaining
Alternative account code = client entertaining
Do not meet the ‘client gifts’ definition (shown below)
Meals, sporting events, theatre, etc
Building or maintaining a business relationship
Must be reasonable
Corporation tax deductible? NO
VAT claimable? NO
Benefit in kind? NO
Uncommon perks with no additional accountancy fees or tax to pay
Quid pro quo
Alternative account code = sundry expenses
Not employee
Services in return for food/drink/other service of a similar value
Comparable (i.e. services received = food provided)
Must be reasonable
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? NO
Client gifts
Alternative account code = advertising, marketing, sundry expenses
Under £50 per tax year
Must carry a clear advertisement for your business which must be on the gift itself (not just the wrapping)
Cannot be alcohol, food, drink or tobacco
Must be reasonable
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? NO
Perks with additional accountancy fees and tax to pay
*speak to us before doing any of the following so we can talk you through the pros/cons
Staff entertaining
Business owner & employees
Outside office
Class 1A NIC is payable by employer
Employees pay tax personally on this or businesses can set up PAYE settlement agreement to pay employees tax for them
Speak to us before doing this so we can talk you through the pros/cons
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? YES - usually a PAYE settlement agreement
Benefit in Kind
Examples:
Medical and dental insurance
Gym membership
Company cars (and vans)
Travel card
Speak to us before doing this so we can talk you through the pros/cons
Corporation tax deductible? YES
VAT claimable? YES
Benefit in kind? YES - the gross cost would go on the P11D