Thank you for small mercis

An exception is made to the new provisions for benefits in kind which are classified as ‘Trivial Benefits’. To qualify, these must satisfy three conditions:

  • The value must be no more than £50 per recipient, or an average of £50 if the benefit is provided to a group of employees and the exact value to each employee cannot be calculated precisely.
  • The benefit must not take the form of cash or cash voucher, though shop vouchers are allowed.
  • The benefit must be gratuitous and not provided in consideration of a service which the recipient is employed to provide.

Any other benefits, except for staff functions, will be taxable; and if the value of a Trivial Benefit exceeds £50 the whole amount will be taxed, not just the excess over £50.

For employees who are not directors, there is no limit to the number of Trivial Benefits which can be provided in any tax year. So an employee could receive 6 benefits with a total value of £300 in the same tax year. But this flexibility would not apply to directors.

Being non-taxable, Trivial Benefits need not be reported to HMRC on form P11D

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Thank you for small mercis

An exception is made to the new provisions for benefits in kind which are classified as ‘Trivial Benefits’. To qualify, these must satisfy three conditions:

  • The value must be no more than £50 per recipient, or an average of £50 if the benefit is provided to a group of employees and the exact value to each employee cannot be calculated precisely.
  • The benefit must not take the form of cash or cash voucher, though shop vouchers are allowed.
  • The benefit must be gratuitous and not provided in consideration of a service which the recipient is employed to provide.

Any other benefits, except for staff functions, will be taxable; and if the value of a Trivial Benefit exceeds £50 the whole amount will be taxed, not just the excess over £50.

For employees who are not directors, there is no limit to the number of Trivial Benefits which can be provided in any tax year. So an employee could receive 6 benefits with a total value of £300 in the same tax year. But this flexibility would not apply to directors.

Being non-taxable, Trivial Benefits need not be reported to HMRC on form P11D