The trivial benefits exemption allows employers to provide low-cost benefits to employees without triggering a tax liability. Read this article to find out the conditions that must be met and the traps to avoid.

It is only permissible for a company to deduct expenditure in computing its taxable profits if incurred wholly and exclusively for the purposes of the trade. Since a company is a separate legal entity that stands apart from its directors and shareholders, it will not incur personal expenses.

Whilst shareholders are the owners of limited companies the job of running them rests with the directors and they must do so for the benefit of the shareholders whilst ensuring compliance with the law.