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BRANAGANS
Accountancy Services Ltd
01709 327 215 | info@branagans.co.uk
December 2025 | Trivial Benefits for Staff: Can You Pay Them?
Understanding the Rules for Providing Trivial Benefits to Employees
WHAT IS A TRIVIAL BENEFIT?
A trivial benefit is a small gift or token provided by an employer to their staff, which is not considered a reward for work or performance. Trivial benefits are subject to specific rules set by HM Revenue & Customs (HMRC).
CAN YOU PAY A TRIVIAL BENEFIT TO YOUR STAFF?
Yes, you can provide trivial benefits to your staff, provided certain conditions are met. These rules are designed to ensure that such benefits are genuinely minor and not a disguised form of salary or bonus.
CONDITIONS FOR TRIVIAL BENEFITS (UK)
- The benefit must not be cash or a cash voucher.
- The cost of the benefit must not exceed £50 per employee per occasion.
- The benefit must not be provided in recognition of work or performance.
- The benefit must not be part of the employee's contract or a contractual entitlement.
A critical condition is that the benefits must be provided infrequently or irregularly. If a benefit is provided too often (e.g., weekly pizza Fridays), HM Revenue & Customs (HMRC) may view it as an expected or contractual obligation, making it a taxable benefit.
If all these conditions are met, the benefit is exempt from tax and National Insurance, and there is no need to report it to HMRC.
EXAMPLES OF TRIVIAL BENEFITS
- Birthday or seasonal gifts, such as a bottle of wine or a box of chocolates
- Flowers for a special occasion
- Non-
cash vouchers (within the value limits) - Team lunches not linked to performance
- A Christmas turkey or bottle of wine
WHAT IS NOT ALLOWED?
- Cash or cash vouchers
- Benefits that are a reward for work or performance
- Benefits specified in the employment contract
- Benefits exceeding the specified value You can provide trivial benefits to your staff, so long as you adhere to the rules.
This is a great way to reward and motivate staff without incurring tax liabilities, provided you stay within the outlined limits and conditions. Always ensure you keep records of any benefits provided, in case of queries from tax authorities.
CONTACT US
Please get in touch with us on 01709 327 215 or email info@branagans.co.uk and we will explain what you need to know.
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