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Trivial Benefits

Back in April this year we included an article in our monthly newsletter about employee benefits.

We would like to take this opportunity to draw your attention to "trivial benefits" in particular as this has been raised by a few clients recently - and with Christmas around the corner, it seems a good time to highlight the topic.

You don’t have to pay tax on a benefit for your employee if all of the following apply:

  • it cost you £50 or less to provide
  • it isn’t cash or a cash voucher
  • it isn’t a reward for their work or performance
  • it isn’t in the terms of their contract

For directors of the employing company, this is capped at £300 per year.

You don’t need to pay tax or National Insurance or let HM Revenue and Customs know.

If you would like any further details or information, please do not hesitate to get in touch.