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There are a number of welcome changes being made to the taxation of benefits on employees and directors with effect from 6 April 2016.
The changes have largely arisen from the work of the Office of Tax Simplification. One in particular will provide much more certainty in the taxation of benefits - a new statutory exemption for 'trivial benefits'. In practice HMRC have accepted that non-cash trivial benefits that are more related to staff welfare, rather than being a reward for services, did not have to be reported on form P11D. But, under tax law, any small benefit could have been taxable.
With effect from 6 April 2016 there will be a statutory exemption for certain non-cash benefits up to £50. There is an annual cap of £300 which applies to some people - office holders (eg directors) of close companies (typically family companies) and employees who are family members of those office holders.
Those affected by this cap will be able to receive a maximum of £300 worth of trivial benefits each year exempt from tax. So trivial benefits are not so trivial.
07 Jun 2021
The online claims service for the fifth SEISS grant will be open from late July 2021.
Businesses that deferred VAT payments last year have less than a month left to join online and pay in monthly instalments under the VAT Deferral New Payment Scheme.