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It’s the little things…

Would you like a tax efficient way to give little perks to your employee’s? (or even yourself!)

Employers are allowed to provide “trivial benefits”, without having to report them on a P11D, and without having to pay any tax or national insurance on the cost. In fact, the expense is tax deductible for the employer, and you may be able to recover the VAT.

So what sort of things could you give?

  • Store gift cards
  • Wine
  • Hampers
  • Chocolate
  • Flowers

What are the conditions?

  • The trivial benefit must cost £50 (incl. VAT) or less
  • The benefit cannot be cash or a cash voucher
  • The benefit cannot be a reward for performance
  • The benefit cannot be provided as a term of their contract

This “trivial benefit” rule also applies to the directors of a company, but please note for close companies there is a limit of £300 for each director each tax year.

These benefits aren’t just related to Christmas though, you can provide them to employee’s for any occasion… birthdays, anniversaries, or just because the sun is shining that day!

If you would like more information about this, please get in touch with us and we’ll be happy to help!