Tax Exempt Gifts - Trivial Benefits 
 
What are trivial benefits? As per the HMRC’s guidance, here are some examples: 
 
• taking a group of employees out for a meal to celebrate a birthday 
 
• buying each employee a Christmas present or birthday present 
 
• flowers on the birth of a new baby 
 
• a summer garden party for employees 
How much can a business gift to its employees and directors? 
 
• An employee can receive multiple trivial benefits throughout the year, as long as each one does not exceed £50. 
 
• However, the exemption for directors is capped at total cost of £300 in the tax year. Therefore up to 6 gifts each costing up to £50 each tax year. 
 
Remember, the rules are: 
 
• Cost of the benefit must not be over £50; 
 
• The benefit must not be in the form of cash or a voucher redeemable for cash; 
 
• The benefit must not be provided as part of salary sacrifice arrangements or any other contractual obligation including any legitimate expectation. 
 
• The benefit must not be provided in recognition of particular services. 
 
• If any of these conditions are not satisfied then the benefit is taxed in the normal way – via a P11D. 
 
• Also, if the cost of the benefit exceeds £50, the whole amount will be taxable rather than just the excess. 
 
You don’t even need to declare it to HMRC so why not treat yourself or your employees with a gift! 
 
If you provide trivial benefits and require assistance or tax advice, please contact a member of our team on 0333 772 7753 or email team@chartaccountancy.com 
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