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Making the most of Trivial Benefits

Now its even easier to be a lovely employer and give your employees Trivial Benefits in the form of treats and perks without creating a liability for the employee to Income Tax for a Benefit in Kind (BiK).

To qualify as a Trivial Benefit, conditions A-D must be met;
A – the BiK must not be cash or a cash voucher
B – the BiK must cost £50 or less
C – the BiK must not be provided as part of a salary sacrifice or contractual arrangement
D – the BiK must not be provided in recognition of service performed by the employee as part of their employment, or in anticipation of such services

There is no limit to the number of Trivial BiK’s that can be provided to any employee in a tax year, unless Condition E applies;
E – £300 annual cap applies where a Trivial BiK is provided by an employer that is a Close Company, to an employee who is a Director or other Office Holder, or member of the family or household of a Director or other Office Holder.

Benefits in Kind

Trivial Benefits

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