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TAX free non-cash vouchers

We notice that few people take advantage of these special rules and we thought we would bring it to your notice as there is till time to do so before 5 April 2025.

The Trivial Benefit Scheme allows businesses to provide small, non-cash gifts of up to £50 to employees without tax or National Insurance implications, but rules vary by business type:

  • Directors of Limited Companies: Can receive up to £300 per tax year in trivial benefits, provided they do not exceed the limit and are not linked to work performance.
  • Employees of Limited Companies & Sole Traders: Can receive up to £50 per gift, tax-free.
  • Sole Traders: Cannot claim trivial benefits for themselves but can provide them to their employees under the same £50 per gift rule.

Key Conditions:

  • Benefits must be non-cash (e.g., vouchers or gifts).
  • No work-related conditions should be attached.
  • Exceeding the limits makes the benefit taxable.
  • This must be done before the PAYE year end of 5 April 2025. 
  • Any amounts given above the £50 will need to be reported on a P11D and Tax and NI paid.

 

For further clarification, businesses are encouraged to reach out for guidance.