Don’t forget to make use of Trivial Benefits

You can make use of £50 vouchers as tax-free trivial benefits, a scheme that allows employers (including directors of limited companies) to provide non-cash gifts to staff without incurring tax or National Insurance liabilities, provided the following conditions are met:

• Each voucher must be for £50 or less.
• Vouchers must not be exchangeable for cash.
• Vouchers must not be performance or service or bonus-related.
• They must not be part of the employment contract or form part of an expected work-related arrangement.

Employees can be given an unlimited amount of vouchers per financial year (obviously within reason) but directors have an annual cap of £300 per year ie maximum of six £50 vouchers.

The company may give away vouchers for special occasions eg birthdays or to all staff to boost morale (ensure this has nothing to do with performance). Vouchers cannot be more than £50 at a time. If it goes a penny over eg £50.01, the whole amount is not tax-deductible.

Vouchers may be store vouchers eg from John Lewis, etc.