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.

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