Help your team in these difficult times by giving them trivial benefits

Learn in this article how to provide your team with some festive cheer and financial reward throughout the year in a tax efficient way.

 Trivial benefits are a way in which you can reward members of your team without incurring any tax liabilities for the employee.

 As an employer you can provide your employees with benefits not exceeding £50 (including VAT), free of tax or any reporting requirements.

 The standard way to reward your employee is to give them a voucher which cannot be exchanged for cash. The employee must not be entitled to the reward as specified in their employment contract or as part of a salary sacrifice arrangement. The benefit cannot be in recognition of a particular service performed.

 The team member can receive multiple trivial benefits throughout the year so long as none of them exceed £50 and the total cost per employee in the tax year does not exceed £300.

 In addition to vouchers, H.M. Revenue & Customs give examples of other trivial benefits, such as: –

  • Meals provided for a group of employees to celebrate a birthday or anniversary
  • Buying employees a birthday or Christmas present
  • A summer garden party for employees

 In the case of any of the above, the value of the benefit per employee must not exceed £50.