Tax Tip – gifts for staff

Trivial benefits are small gifts or other perks that a company can give to staff and directors tax free subject to certain conditions.

  • Maximum £50 per gift. If the cost is over £50 then THE WHOLE cost is taxable, not just the amount over £50
  • Not cash or a voucher
  • Not a reward for work or performance
  • Not a part of their employment contract
  • Maximum £300 per year for directors

Trivial benefits don’t need to be reported on P11Ds as they are not subject to tax or national insurance.

This is a nice way to look after your team and is separate to employee entertaining.

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