Did you know that many UK based small businesses still aren’t aware of a great little tax free gifts benefit you can offer your employees? 🤯
It’s called a trivial benefit, and it’s an easy way to show your appreciation without paying extra tax or National Insurance!
Trivial benefits are small gifts, like a box of chocolates, a voucher for a favourite retailer, or a birthday meal, costing £50 or less. But here’s the key: they can’t be a reward for work well done or linked to performance. 🎉
If you follow the rules – no tax, no National Insurance, and no paperwork – it’s that simple! Just remember, the gift can’t exceed £50 per occasion, and it can’t be cash or a cash voucher. Oh, and remember that’s IN-clusive of VAT!!
And for you directors out there, there’s an extra rule – you can only claim up to a maximum of £300 value of these benefits per financial year.
A further point to note is not to try to be clever and offer your trivial benefits as part of a salary sacrifice scheme – not only will this mean that they will not be exempt, but it opens up a whole world of pain in terms of reporting!!
It’s surprising how many businesses aren’t taking advantage of these tax free gifts! 🤔
Follow the guidance carefully, and give your employees a little something extra, the right way.
And if you’ve got any questions, contact us – we’re here to help.
For the full HMRC Guidance on tax free gifts, please follow the link below:
https://www.gov.uk/expenses-and-benefits-trivial-benefits
P.S. Disclaimer – the expiry date of 30th October 2024 on the gift card image does NOT mean that trivial benefits are being reformed, reviewed or cancelled in the 2024 autumn budget – it is just a date!
