An employer can provide a “trivial benefit” to their employee and neither will have to pay tax or national insurance on the cost of the benefit or report it to HMRC. The employer can also claim tax relief on the cost of the benefit provided. There are no limits to the number of trivial benefits that an employer can provide to their employees.
There are conditions however:-
- The benefit must cost less than £50
- It must not be a reward for services
- It must not be cash or a cash voucher – A gift card that can only be exchanged for goods and not cash is allowed
If you are a director/ shareholder of your own limited company you can also receive a trivial benefit from your company however there is a limit of £300 per year.