From 6 April 2016, items under £50 are classed as trivial and there is no limit on the number of trivial benefits an employee can receive, subject to certain exceptions. 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.
Points discussed within this guidance note:
> Trivial benefits - statutory exemption
From 6 April 2016, the trivial benefits exemption means that an employer does not have to pay tax on a benefit received by an employee or for gifts to employees, subject to certain conditions which include if the benefit cost less than £50 to provide, and it isn't cash, or a cash voucher. The use of non-cash vouchers, salary sacrifice schemes, and where the employer is a close company are also discussed.
> Reporting requirements
HMRC trivial benefits which satisify the conditions for the trivial benefits exemption do not attract tax or NI consequences and there are no further reporting requirements.
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