Trivial benefits

Oct 25, 2023
Author: Hawsons
Trivial benefits

Employers can provide trivial benefits to employees without incurring tax liabilities.

To qualify as a trivial benefit, a number of conditions must be met which are that the:

  • Cost of providing the benefit does not exceed £50
  • Benefit is not cash or a cash voucher
  • Benefit is not provided under salary sacrifice arrangements or any other contractual obligation
  • Benefit is not provided in recognition of particular services performed by the employee in the course of the employment or in anticipation of such services

In addition, where qualifying trivial benefits are provided to directors and other office holders of ‘close’ companies, they will be subject to an annual cap of £300.  Where the benefit is provided to a member of the employee’s family or household who is not an employee of the employer, this benefit will count towards the £300 exempt amount.  Where the director’s or other office holder’s family or household member is also an employee of the company, they will be subject to a £300 cap in their own right.

Trivial benefits do not need to be reported on a P11D form and are exempt from income tax and National Insurance.

Please contact us for advice on how the exemption operates.

Craig Walker

Tax Director, Sheffield

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