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.
