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? 

Carry on reading below or watch the video here where Sarah Harkness, MD of IN Accountancy, explains trivial benefits for UK Business Owners. 

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, but it’s an easy way to show your appreciation without paying extra tax or National Insurance. 

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:
www.gov.uk/expenses-and-benefits-trivial-benefits

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