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.