Trivial Benefits to Employees

[SteelyDan]

Just had a bulletin type thing from my accountants which included a brief mention of the above.

Can any of the a/cs on here clarify what this means in plain English, please?

Seems we (as employers) can make gifts to employees (of our respective co) which don't have a BIK impact. What sort of things does this include and what's the individual values?
Just read something which suggests there's an annual limit of £300.

[PerfectStorm]

Rather large guide here:

https://www.gov.uk/government/upload...ion_180614.pdf

I seem to remember some contractors/accountants recommending a very limited, perhaps seasonal thing like a christmas turkey (seriously) or a bottle of wine for a job well done (as noted by HMRC!)

Probably another thing that needs to go to court to work out where the lines are drawn

[northernladuk]

Rather large guide here:

https://www.gov.uk/government/upload...ion_180614.pdf

I seem to remember some contractors/accountants recommending a very limited, perhaps seasonal thing like a christmas turkey (seriously) or a bottle of wine for a job well done (as noted by HMRC!)

Probably another thing that needs to go to court to work out where the lines are drawn

Indeed but there is a pretty solid common sense line that can be drawn for contract set ups for most of them. For a start most of us don't have employee's. Some will be using the wife for avoidance purposes and a small percentage of us may have a genuine employee so most of these benefits are out for a start.

There is then the balance of how much do you save to how much hassle it's going to be explaining it if you get investigated yadda yadda. Worth having a scan to see if any are pertinent to your individual situation but still needs consideration.

More examples of what could be considered are given here..

Trivial benefits

Trivial benefits

End of the day it doesn't mean it's free, just discounted. No point buying stuff just because of this.

[northernladuk]

Looking in to it there is no clear list but there seems to be a definition which should allow you to make a decision (unless you are PC)...

What is a trivial benefit
For the purposes of the exemption, a trivial benefit is a benefit that is provided to an employee, or a member of the employee's family or household, that meets each of the following conditions:
 the benefit is not cash or a cash voucher
 the cost of providing each benefit does not exceed £50
 the benefit is not provided under a salary sacrifice arrangement or any contractual obligation
 the benefit is not provided in recognition of services performed, or to be performed,

[TheCyclingProgrammer]

Pretty sure this is to cover things like a bunch of flowers to congratulate an employee for something, a bottle of wine etc. Literally trivial things that aren't worth taxing or recording on the P11D. Apply rules above plus common sense.