Trivial Benefits – gifts to employees
What gifts can I give to my employees?
As the summer arrives you may be thinking about making a gift to your employees.
You don’t have to pay tax on a benefit for your employee if ALL of the following conditions apply:
1. Cost you £50 or less to provide
2. It is not cash or a cash voucher
3. It is not a reward for their work or performance
4. It is not part of their contract
This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance or let HM Revenue and Customs know. So, you could use this as a way of making a gift to your employees to give them a nice surprise!
Importantly, you have to pay tax on any benefits that don’t meet all these criteria.
For the Directors – You cannot receive trivial benefits worth more than £300 in a tax year if you are the director of a ‘close’ company. A close company is a limited company that’s run by 5 or fewer shareholders.
The Shaw Austin team of Chartered Accountants are highly trained and qualified professionals. We are committed to providing the highest level of service to our clients, large or small. We handle clients financial information with care and expertise, and provide advice tailored to your unique needs and goals.
Our offices are based in Chester. However, we support clients throughout the region from Crewe, Wallasey or Wrexham, North Wales or West Kirby and beyond. Contact us today.
This is a general article to assist readers. Professional advice should always be taken in respect of your personal circumstances.
Updated June 2023.