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Celebrate your team: The perks of trivial benefits
Employee appreciation doesn't always have to come with a hefty price tag. In fact, some of the most meaningful gestures can be the simplest. Trivial benefits are a fantastic way to show your team you care without worrying about complex tax rules.
What Are Trivial Benefits?
Trivial benefits are small perks or gifts given to employees that are exempt from tax and National Insurance. To qualify, these gifts must meet the following criteria:
· They cost £50 or less
· They are not cash or cashvouchers
· They are not a reward for work orperformance
· They are not stipulated in the employee's contract.
Group Celebrations and Trivial Benefits
When it comes to celebrating milestones or special occasions with a group of employees, trivial benefits can still apply. For instance, if you take your team out for a meal, you can calculate the average cost per person. As long as the average is less than £50 per head and meets the other conditions, it's considered a trivial benefit.
Special Rules for Company Directors
If you're a director of a 'close' company—a limited company controlled by five or fewer shareholders who are all directors—there are additional limits. Directors can only receive up to £300 in trivial benefits per tax year. This limit is distinct from the exemption available for annual events like Christmas parties or summer BBQs, where you can claim up to £150 per employee.
Why Opt for Trivial Benefits?
Offering trivial benefits is not just about saving on tax; it’s about building a positive workplace culture.Small, thoughtful gestures can significantly boost morale and show employees that their contributions are valued.
For more tailored advice, book a free consultation with one of our experts to receive a no-obligation quote.