Trivial benefits

By Tolley in association with Philip Rutherford
Employment_tax_img

The following Employment Tax guidance note by Tolley in association with Philip Rutherford provides comprehensive and up to date tax information covering:

  • Trivial benefits
  • Trivial benefits ― statutory exemption
  • Reporting requirements

This document discusses these in detail, together with the conditions for a benefit to qualify as trivial; and the reporting requirements for tax and NIC.

 

Trivial benefits ― statutory exemption

From 6 April 2016 there is a statutory exemption in place for trivial benefits. Items under £50 are classed as trivial and there is no limit on the number of trivial benefits an employee can receive, except where the benefit would otherwise be chargeable on a director or office-holder of an employer company which is a close company, in which case an annual cap of £300 per person per tax year applies.

ITEPA 2003, ss 323A, 323B

There are a number of conditions for a benefit to qualify as trivial:

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