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Trivial Benefits for employees and directors
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
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
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
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.