At this time of year some employers may wish to make small gifts to their employees.
For many years HMRC have been prepared to accept that so-called trivial benefits were not taxable under certain circumstances. However a statutory exemption has been introduced from the start of the current tax year which should give employers certainty that the benefits provided are exempt and do not result in a reportable employee benefit in kind. In order for the benefit to be exempt it must satisfy the following conditions:
- the cost of providing the benefit does not exceed £50.00
- the benefit is not cash or a cash voucher