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Under the trivial benefits rules, gifts meeting certain criteria are exempt from income tax and NIC for employees and employers.

The criteria for a gift to be treated as a trivial benefit are:

  • The gift must not be cash or a cash voucher. Gift vouchers are allowed.
  • The total cost of the gift including VAT must not exceed £50 per employee.
  • The gift must not be provided under salary sacrifice or other arrangement.
  • The gift isn’t a reward for their work or performance.
  • The gift must not be provided in connection with the employees contract.

If the cost of the gift exceeds the £50 the full value will be taxable under the normal benefit in kind rules.

There are rules in place that a director of a close company can only receive a total of £300 of trivial benefits in any tax year.

If you want to discuss this further, please get in touch today and we can help you explore the different ways you can reward your staff. Please contact us on 0800 0523 555 or use our simple online contact form to arrange a free initial consultation.

Date published 30 Oct 2019 | Last updated 9 Dec 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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