From 6 April 2016 there will be an update to with a statutory definition of what can be <mod snip> Benefits in kind have been free of tax for some time, subject to HMRC’s discretion but it has always been difficult to define exactly what constitutes a “trivial” benefit meaning employers often pay more tax due to misinterpretation. Therefore this change should be welcomed by employers and employees.
In order to be treated as “trivial” the benefit must satisfy the following conditions :
- Provision can not be more than £50
- Provision must not be in the form of cash or a cash voucher
- The employee must not be entitled to the benefit as part of any contractual agreement
- The benefit must not be provided in recognition of any particular service performed by the employee
This is a welcome reform which should remove a fair amount of “red tape”.