{"id":1216,"date":"2023-10-02T00:00:00","date_gmt":"2023-10-01T23:00:00","guid":{"rendered":"https:\/\/duffyregan.co.uk\/index.php\/2023\/10\/02\/tax-on-trivial-benefits\/"},"modified":"2023-10-02T00:00:00","modified_gmt":"2023-10-01T23:00:00","slug":"tax-on-trivial-benefits","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2023\/10\/02\/tax-on-trivial-benefits\/","title":{"rendered":"Tax on trivial benefits"},"content":{"rendered":"<p>There is a benefit-in-kind (BiK) trivial exemption that applies to small non-cash benefits like a bottle of wine, or a bouquet of flowers given occasionally to employees, or any other BiK classed as &#039;trivial&#039; that falls within the exemption. By taking advantage of the exemption employers can simplify the treatment of BiKs whilst at the same time offering a tax efficient way to give small gifts to employees.<\/p>\n<p>The trivial benefit rules provide a great opportunity to provide small rewards as an incentive to employees. The main caveat being that the gifts are not provided as a reward for services performed or as part of the employees&rsquo; duties. However, gifts to employees on milestone events such as the birth of a child or a marriage or other gestures of goodwill would usually qualify.<\/p>\n<p>The employer also benefits as the trivial benefits do not have to be included on PAYE settlement agreements or disclosed on P11D forms. There is also a matching exemption from Class 1A National Insurance contributions.<\/p>\n<p>The tax exemption applies to trivial BiKs where the BiK:<\/p>\n<ul>\n<li>is not cash or a cash-voucher; and<\/li>\n<li>costs &pound;50 or less; and<\/li>\n<li>is not provided as part of a salary sacrifice or other contractual arrangement; and<\/li>\n<li>is not provided in recognition of services performed by the employee as part of their employment, or in anticipation of such services.<\/li>\n<\/ul>\n<p>The rules also allow directors or other office-holders of close companies and their families to benefit from this relief but with an annual cap of &pound;300. The &pound;50 limit remains for each gift but could allow for up to &pound;300 of non-cash benefits to be withdrawn per person per year. The &pound;300 cap does not apply to employees. If the &pound;50 limit is exceeded for any gift, the value of the benefit will be taxable.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>There is a benefit-in-kind (BiK) trivial exemption that applies to small non-cash benefits like a bottle of wine, or a bouquet of flowers given occasionally to employees, or any other BiK classed as &#039;trivial&#039; that falls within the exemption. By taking advantage of the exemption employers can simplify the treatment of BiKs whilst at the [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1216","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=1216"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1216\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=1216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=1216"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=1216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}