You don’t have to pay tax on a benefit for your employee if all of the following apply:
- it cost you £50 or less to provide
- it isn’t cash or a cash voucher
- it isn’t a reward for their work or performance
- it isn’t in the terms of their contract
This is known as a ‘trivial benefit’. You don’t need to pay tax or National Insurance or let HM Revenue and Customs (HMRC) know.
Please note that you do have to pay tax on any benefits that don’t meet all these criteria.
If you you’re not sure whether a benefit counts as a trivial benefit call the HMRC employer helpline.