This document discusses these in detail, together with the conditions for a benefit to qualify as trivial; and the reporting requirements for tax and NIC.
Trivial benefits - statutory exemption
From 6 April 2016 there is a statutory exemption in place for trivial benefits. Items under £50 are classed as trivial and there is no limit on the number of trivial benefits an employee can receive, except where the benefit would otherwise be chargeable on a director or office-holder of an employer company which is a close company, in which case an annual cap of £300 per person per tax year applies. ITEPA 2003, ss 323A, 323B There are a number of conditions for a benefit to qualify as trivial:
- the benefit is not in the form of cash or a cash voucher (see the Vouchers guidance note)
- the cost of the benefit is no more than £50
- the benefit is not provided as part of any contractual obligation or salary sacrifice arrangement
- the benefit is not awarded as a form of recognition for services performed by the employee (or in anticipation of any such services)