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Trivial Benefit

Trivial benefits offer a tax-efficient way for employers, like yourself, to show appreciation to your employees without the need of any declarations to HMRC. 

These benefits, 'trivial' due to their nominal value, can include small gestures such as chocolates, gift vouchers or flowers to mark special occasions.

To ensure compliance and clarity, HMRC has established specific conditions for trivial benefits, including:

👉 Each benefit must not exceed £50 per employee.

👉 Benefits should not be in the form of cash or cash vouchers.

👉 They must not be linked to work performance or rewards.

👉 Trivial benefits should not be part of the employment contract.

If an employer ensures that each benefit remains under £50, they can provide employees with multiple trivial benefits throughout the year. However, for close companies—defined as limited companies with five or fewer 'participators', or where all 'participators' are also directors—there is a cap on the exemption.

In such cases, the total cost of trivial benefits per director must not exceed £300 in the tax year. 

Now you know about the trivial benefit, here are some ideas that you could give yourself or employees tax-free:

📍Birthday meal - you can take your spouse or child as long as the cap is not exceeded.

📍 A gift voucher for Christmas.

📍A summer BBQ for employees.

📍New job and farewell gifts.

📍Friday pizzas.

📍Housewarming gift and flowers.



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