Glossary · UK
What is Trivial Benefits Exemption?
A tax exemption for small, occasional non-cash gifts from an employer to staff.
Full Definition
The trivial benefits exemption lets an employer give employees small, occasional non-cash benefits — such as a birthday gift or a small hamper — completely free of tax and National Insurance, provided the cost per benefit is below a set limit, it is not cash or a cash voucher, it is not a reward for work performance, and it is not contractually owed. For directors of close companies, there is also an annual cap on the total value of trivial benefits that can be received tax-free in a tax year.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.