Trivial Benefits

As you may be aware, unless a benefit in kind has a specific exemption or extra-statutory concession, it is taxable and also attracts either class 1A or 1 National Insurance.

What you may not know is from April 2016 HM Revenue & Customs have introduced a new “trivial benefit” exemption. A trivial benefit can be anything up to a maximum of £50.00 including VAT providing it meets the following criteria:

  • Is not cash or cash voucher
  • The cost of providing the benefit does not exceed £50.00
  • The benefit is not provided under salary sacrifice arrangements or any contractual obligation
  • The benefit is not related to employee performance

Although the limit for each benefit is £50.00 each there is no limit to the amount of benefits an employee can receive however for directors there is a cap of £300.00 per annum.


One thought on “Trivial Benefits

  1. So an employee could receive a £50 trivial benefit every week and it not be taxable or subject to NI?
    Well, Mr Tax Man, that may be trivial to you but seems pretty generous to me.
    Or is there another hidden catch somewhere?


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