A Trivial Benefit continues to be very popular and is frequently given by employers to directors and employees.

These have no P11d tax implication for the employee, and are a tax deductible expense for the business.

 

What is a Trivial Benefit?

It is something that

• Costs £50 or less to provide (including VAT)
• Is not a reward for service
• Is not expected by the employee or in the terms of the employee’s contract
• Effectively acknowledges a personal event relating to the employee
• If it is a retail store voucher, it cannot be convertible into cash
• Is not reimbursed

 

Reasons when a trivial benefit can be given

• Happy Christmas
• Happy Easter
• Celebrating Diwali or other festivals
• Anniversary of becoming an employee
• Congratulations on your engagement/wedding/birth of child
• Delighted your child has passed their 11 plus!
• Other similar “events”

What can be given to employees?

• John Lewis or Amazon vouchers
• Christmas hampers
• Box of fireworks for an employee
• Tickets to the theatre or a show
• A very good bottle of wine/champagne
• Tickets to a sporting home game, such as Altrincham FC or Sale Sharks, etc
• Lesson for a sport, such as tennis or skiing lessons

 

Restrictions

Note that where the payment is made to a director of a close company (which is a limited company with five or fewer shareholders), then there is a £300 limit on the trivial benefits provided in each tax year to the director.

Sole traders can not take advantae of Trivial Benefits for themselves but can for any of their employees.

 

If you have any questions about this, then please contact us, or for further guidance look at HMRC – https://www.gov.uk/expenses-and-benefits-trivial-benefits