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Tax Free £50 Benefits

We have found a fantastic way to motivate your employees !

Fortunately, there are some great rules introduced by Finance Bill 2016 which indicates that NO TAX is payable on trivial benefits.

 

 

Here’s the criteria that need to be satisfied for a trivial benefit:

  1. Up to £50 per benefit. If the benefit is provided to a group of employees and it is not possible to work out the exact cost for each individual, then an average of £50 is allowed.
  2. It is not a cash or cash voucher. (gift vouchers, eg. for a shop, are allowed).
  3. It cannot be a contractual benefit or part of a salary sacrifice scheme.
  4. It should not be in recognition of an employment duty. Although, this will be very subjective
  5. Directors of family companies can enjoy up to £300 of benefits and there is NO LIMIT for other employees