Trivial Benefits! What you need to know!
Posted on 9th August 2024
Friday's Fortnightly Tax Tip
Did you know an employer can provide trivial benefits to an employee, such as wine, flowers or a meal out without any tax or national insurance implications for either the employer or the employee?
Well you can! But there are three conditions that must be met for the exemption to apply are:
• The trivial benefit must not cost more than £50;
• It must not be a reward for services or in any way contractual;
• It must not be cash or a cash voucher (but can be a gift card, which cannot be exchanged for cash).
However, there is an annual cap of £300 for trivial benefits provided to directors and other office holders of close companies (including members of their families and household).
For further information, please visit the HMRC guidance here.
For more guidance call the team at Holmes Accountancy on 01908 315716 or contact us here.
The tax tip is provided for general guidance only; further advice should be sought, for specific issues.
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