Ltd company directors…did you know that you could get £300 worth of tax-free perks a year?…

If you run your own limited company, here’s a little money-saving tip you might not know about!

Did you know your company could pay for up to £300 worth of treats for you every tax year, without you having to pay personal tax on them?

And yes, that can include gift vouchers for your favourite shops. It’s all thanks to something called Trivial Benefits, which is actually allowed under HMRC rules. It’s not some dodgy tax loophole either!

So how does it work?

If you’re a director of a qualifying limited company, your company can buy you little gifts throughout the year, as long as they meet a few simple rules.

Each gift must cost no more than £50, and you can receive up to £300 worth in a tax year. The gifts can’t be cash, part of your employment contract or a reward for doing your job.

So, for example, your company could buy you six separate £50 John Lewis gift vouchers over the year, provided each one qualifies under the rules.

A friend of mine has actually gone for John Lewis vouchers. Hers are valid for a couple of years, so she doesn’t have to rush out and spend them straight away. She can save them for something she really wants.

And it’s not just directors of big companies who can benefit. If you’re the only director of your own limited company, you could qualify too.

The £300 yearly limit applies to directors of what’s known as a close company, which includes many small, owner-managed limited companies. If you run your own limited company, whether that’s just you or you and a business partner, there’s a good chance your company qualifies. HMRC calls these ‘close companies’, which basically means the business is controlled by a small number of people.

Now, before anyone gets too excited, HMRC isn’t giving away £300 in free vouchers. Your limited company pays for them. But if everything meets HMRC’s rules, you don’t pay personal Income Tax or National Insurance on those benefits.

It’s one of those little perks of running a limited company that you might not even realise exists. And with the cost of everything these days, it’s worth knowing what you’re entitled to! You can read all about it on the official HMRC website here: