This corker (excuse the pun) of a tax loophole has just come to my attention.<\/p>\n
The new \u201ctrivial benefits exemption\u201d introduced earlier this year means that, as a director of a limited company, you can purchase multi bottles of wine (costing less than \u00a350 each) up to a maximum of \u00a3300 of wine in any one year.<\/p>\n
Yes \u2013 HMRC have introduced a tax loophole allowing you to buy wine through your limited company \u2013 what a result!<\/p>\n
Of course if you do not like wine the benefits can be anything else as long as the rules, below, are followed.<\/p>\n
The rules<\/strong><\/span><\/p>\n To qualify for this benefit you do need to keep within the rules, which frankly shouldn\u2019t be arduous:<\/p>\n Note \u2013 further rules may apply; so it is always best to check the detail with your accountant.<\/em><\/strong><\/span><\/p>\n Multi Directorships<\/strong><\/span><\/p>\n And of course if you are a director of more than one limited company you can exploit this rule through each of your directorships.<\/p>\n Presents and Gifts<\/strong><\/span><\/p>\n Within the \u00a3300 maximum and \u00a350 per item limit, as a director you can also give \u201cbenefits\u201d to members of your household; so you could buy your (living at home) children a computer game (less than \u00a350) or your spouse a pair of socks.<\/p>\n Spouse<\/strong><\/span><\/p>\n Although if your spouse is a director they too get benefit from this loophole \u2013 so an extra \u00a3300 allowance with a maximum of \u00a350 per \u201cbenefit\u201d.<\/p>\n Note for accountants – Brainless HMRC<\/strong><\/span><\/p>\n You have got to wonder why HMRC did not apply the same rules as for the Employment Allowance. Surely someone could have foreseen the potential to exploit this little gem of a tax rule.<\/p>\n\n