Trivial Benefits

tgburgin

Hi,
I’m just trying to process a trivial benefit expense and don’t know what to classify is as, any clues?
Cheers,
Tom

TomFromCrunch

Hi Tom - welcome to the Community Forum! Cool avatar!

The best way to do this would be to record your expense as normal using the relevant expense category the cost relates to, however, you’ll need to change the ‘VAT Rate’ to ‘Zero’. Hope this is helpful!

There’s also a HMRC article with a bit more info on these types of expenses.

tgburgin

BEHOLD THE MIGHTY PLATYPUS!

Thanks for the feedback. I think this HMRC page is the one that needs to be referenced though, right?

halbot

tgburgin Can you please clarify, let’s say you buy some £50 amazon vouchers as a trivial expense. What would the relevant category be?

tgburgin

@halbot I’ve got it down as Employee Costs -> Staff Welfare but amended to zero VAT. Hope this helps.

Dennis

FYI there are similar expense types in Crunch:

Employee Costs > Staff Welfare
Employee Costs > Staff Benefits and Expenses

The first one looks correct for recording trivial benefits, as tgburgin mentioned. Here’s a Crunch article covering it with a Christmas gift example. Note the differences in the HMRC rules that apply to directors of a ‘close’ company as opposed to an employee.

I haven’t found any articles by Crunch explaining the second expense type in more detail.

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