Trivial Benefits

Do you know about Trivial Benefits?

Trivial benefits allow you to provide small perks to yourself and/or your employees, without paying Tax or National Insurance, provided certain criteria are met.

How Trivial Benefits work:

The value must not exceed £50 (including VAT): If you spend even a penny over, the entire amount is taxable, so it’s essential to stay within this limit.

The benefit cannot be cash, a cash voucher or redeemable for cash. While you can't use trivial benefits for cash gifts, you can purchase gift vouchers or items.

It must not be part of your contractual obligations or a reward for working, for example: a performance bonus. Trivial benefits are intended as perks. This means you’re giving yourself a treat, not something linked to company performance or productivity.

The total annual cap for directors is £300! Directors of a company can claim up to £300 in trivial benefits each tax year. This is 6 x £50 benefits including VAT. Note, these must be purchased separately! You could buy 6 £50 vouchers in one go, but they must be separate purchases to qualify. 

You could shave hundreds a year off your profit and thus reduce your corporation tax bill, and get a bonus perk for doing so. You could save even more if giving a gift to your employees too.

Speak to us for more information.