Pro-Taxman

Trivial Benefits

Utilise the trivial benefits exemption to provide tax-free Xmas gifts

The Covid-19 pandemic has placed the office Christmas party firmly off the menu this year. Regardless of what restrictions are in place over the Christmas season, many employers will want to take the opportunity to spread some seasonal cheer amongst workers, who may have been furloughed or working from home for much of 2020. The …

Utilise the trivial benefits exemption to provide tax-free Xmas gifts Read More »

“Just because a gift is provided each year, or is provided to all staff members, does not mean that the employee has a contractual entitlement to it.”

Trivial benefit traps – Contractual obligations The trivial benefits exemption allows employers to provide employees with low cost benefits free of tax and National Insurance and any reporting obligations. For the purposes of the exemption, a benefit is trivial if the cost per head is not more than £50. Where trivial benefits are provided to …

“Just because a gift is provided each year, or is provided to all staff members, does not mean that the employee has a contractual entitlement to it.” Read More »