HMRC’s Trivial Benefits

HMRC’s Trivial Benefits in Kind Exemption allows an employer to provide a gift to its employees without it being a benefit in kind provided it meets the following criteria:

- the cost of providing the benefit does not exceed £50 (or the average cost per employee if a benefit is provided to a group of employees and it is impracticable to work out the exact cost per person) - the benefit is not cash or a cash voucher

- the employee is not entitled to the benefit as part of any contractual obligation (including under salary sacrifice arrangements)

-the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties (or in anticipation of such services)

There is an additional restriction on directors, other officers of the company or direct members of their family or household. In this scenario, as well as the above criteria, there is a limit of £300 per year. Any gifts given beyond this level will be subject to tax and national insurance as additional salary.

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