A G Smith & Co

Trivial Benefits

Trivial Benefits

Posted on 22/09/2021 by Jordan Smith

Trivial benefits can be frequently given to employees without any tax consequences. A trivial benefit is one that:

  • costs £50 or less to provide (including VAT),
  • cannot be converted into cash,
  • isn’t a reward for service,
  • isn’t in the terms of the employee’s contract
  • is not reimbursed.

Some examples include Amazon vouchers, Christmas hampers, local football tickets, wedding anniversary champagne etc.

An individual gift cannot exceed £50 in total. For example, you could give an employee several Amazon vouchers throughout the year for £50 each, but do not top up a gift card as this is not separately identifiable.

There is a further restriction for directors of close companies: a maximum of £300 can be given in any one tax year.

Case Studies


A Refrigeration Company with Cash at Year-End 1. A Refrigeration Company with Cash at Year-End Andrew Smith (FCCA), Director Find out more >
A Taxi Company Moving into the Digital World 2. A Taxi Company Moving into the Digital World Jordan Smith (BSc) Find out more >
Small Sole-Trader Wind-Up: Securing Income for Husband & Wife 3. Small Sole-Trader Wind-Up: Securing Income for Husband & Wife Brandon Hart (FMAAT), Accounts Manager Find out more >

Read Some More...

15/09/2021 Corporation Tax Super Deduction

Corporation Tax Super Deduction

From now until 31st March 2023, eligible expenditure on new plant and equipment (including vans) may qualify for a 130% allowance against profits chargeable for Corporation Tax...

Read more

08/09/2021 Electric Vans

Electric Vans

From 6th April 2021 onwards, there is no benefit charge for employees who drive fully electric vans and use them privately, plus the added bonus of no fuel charge either...

Read more

01/09/2021 Cycle-to-Work Scheme

Cycle-to-Work Scheme

An employer can provide any bike (including e-bikes) to an employee without a benefit-in-kind arising. The employee then makes payments through a salary sacrifice scheme, saving employee tax/NI as well as Employer NIC...

Read more