5 Accounting Perks Most Ltd. Company Directors Overlook

Most limited company directors already understand the importance of working with a qualified accountant, especially when it comes to staying compliant, filing returns, and managing day-to-day finances.

But here’s what many directors don’t realise: your accountant can do a lot more than keep you out of trouble with HMRC.

Done properly, accounting support can help mitigate against rising taxes, extract profits more efficiently, and plan better for both your business and personal finances.

Here are five accounting perks many limited company directors aren’t fully aware of, along with practical examples of how they can benefit you:

Tried & Trusted Director Benefits

Before we get into some more unusual limited company director benefits, you’ll want to ensure you have the main ones covered. It’s surprising how many directors underclaim these allowable business expenses, either out of caution or simply because they’re not sure what qualifies.

Examples of common claims you may be missing:

• Use of home as office: flat rate of £6 per week or claim a proportion of home running costs (for example, electricity, heating, broadband) based on business use.
• Mobile phone contract: if the phone contract is in the company’s name and used for business, the full cost can be claimed tax-free.
• Mileage in your own car: claim 45p per mile for the first 10,000 miles, then 25p per mile after that, as long as it’s for business journeys (not commuting).
• Capital allowances: if you buy a laptop, monitor, or office chair, these may qualify for 100 percent relief under the Annual Investment Allowance.

It’s also important to mention how you as an individual are paid from the company. As a limited company director, you can extract income through a mix of salary and dividends. With careful planning, you could pay yourself a £12,570 salary and dividends up to the 8.75% basic rate threshold of £50,270, keeping income tax and National Insurance to a minimum. Structured correctly, this approach can save thousands each year. An accountant can also advise on pension contributions and avoiding personal tax thresholds to avoid triggering some of the higher rates.

Now, we have the fundamentals covered, let’s look at 5 lesser-known company director benefits:

1. Annual Parties and Staff Events – Even for Solo Directors

HMRC allows a company to spend up to £150 per person per year on annual functions (e.g. a Christmas party), tax-free, including directors.

✅ Yes, even if you’re a one-person company, this applies and you can even bring a plus-one so you don’t get lonely! The only requirement is that it’s an annual event and properly recorded with tax receipts etc.

2. Employer Pension Contributions – Above Personal Allowances

Most directors don’t realise their limited company can make employer pension contributions far above their personal pension annual allowance - and these contributions are generally:

• Corporation tax-deductible
• Not subject to National Insurance
• Not treated as a benefit-in-kind

✅ Example: Your company contributes £20,000 to your pension in a year. That’s a £20,000 business expense, no personal tax on receipt, and your retirement fund grows tax-free.

3. Using the “Trivial Benefits” Allowance Creatively

As a limited company director you are able to claim up to £50 per item, and up to £300 per tax year of trivial benefits for directors, provided it’s not cash and not linked to performance

You can also use this for non-cash gifts such as:

• A meal for employees (even if that means you!)
• Gift cards
• Flowers, wine, or chocolates
• Subscriptions (e.g. Spotify or Netflix – if not for work)
  Provided it’s not a reward for work or contractual, it’s tax-free.

✅ Tip: For a director, the £300 cap applies per tax year - not per benefit. Spread it over the year to maximise the perk.

‍

4. Tax-Free Loans up to £10,000

Your company can lend you up to £10,000 interest-free, short-term, without any personal tax charge, as long as:

• It’s repaid within 9 months of your company year-end
• You don’t exceed the limit or leave it outstanding long-term

✅ This can be used for cash flow flexibility, bridging gaps between dividend payments, or covering personal expenses in the short term - without interest or benefit-in-kind reporting if managed properly.

‍

5. Electric Vehicles Tax Savings

Directors can make use of low-tax benefits like electric company cars and salary sacrifice schemes to reduce tax while supporting long-term goals.

• Electric vehicles provided by the company attract just 3% benefit-in-kind (BiK) tax in 2025/26 vs. around 30% for petrol/diesel.
• Charging at work is tax-free, and electric vans may qualify for zero BIK in some cases.
• Salary sacrifice allows you to exchange part of your salary on a low-emission vehicle, saving on Income Tax and National Insurance.

These options to use electric vehicles to save on BiKs and for salary sacrifice are often overlooked but can offer substantial savings when structured properly.

Company Directors: Are You Getting This Level of Accounting Advice?

With the right guidance, limited company directors can extract profits efficiently, plan ahead with confidence, and make the most of lesser-known reliefs and allowances.

At Linggard and Thomas, we are a team of pro-active accountants that work with directors who want more than just year-end accounts. They want practical advice, clear answers, and real savings.

If that sounds like you, get in touch for a no-obligation review.