Monday 10th October 2016

Now its easier to be generous

New simplified trivial benefits rules mean that an employer can provide employees with a gift up to £50 in value, without creating any tax or national insurance implications.
As long as the gift is not cash, or a voucher exchangeable for cash, and less than £50, there is no limit on the number of such gifts that you can provide. However, they cannot be a reward for any work or achievement on the employee’s behalf. So for example, you can give them a bunch of flowers or Marks and Spencers gift card on their birthday, but it wouldn’t be allowed to do the same because they had achieved a target for the month.

Such gifts can also be given to an employee’s family or household.

Directors too can receive trivial benefits from their company, but there is a limit of £300 worth of gifts a year for each director/secretary and their family.
Further guidance can be found here.