We have found a fantastic way to motivate your employees!
Fortunately, there are now some great new rules introduced by
Finance Bill 2016 which indicates that NO TAX is payable on trivial benefits.
- 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.
- It is not a cash or cash voucher (gift vouchers, eg. for a shop, are allowed).
- It cannot be a contractual benefit or part of a salary sacrifice scheme.
- It should not be in recognition of an employment duty. Although, this will be very subjective.
- Directors of family companies can enjoy up to £300 of benefits and there is NO LIMIT for other employees.
This is good news for those businesses who are already very giving to their staff and even better news for those businesses new to giving.