A new tax exemption was introduced with effect from 6 April 2016 which enables employees to enjoy ‘trivial’ benefits tax-free. As is usually the case, availability of the trivial benefits exemption depends on certain conditions being met. The conditions : For the exemption to apply, all of the following conditions must be satisfied.
- The cost of providing the benefit is not more than £50.
- The benefit is not cash or a cash voucher.
- The employee is not entitled to a benefit as part of any contractual obligation (including a salary sacrifice arrangement).
- The benefit is not provided in recognition of particular services performed by the employee as part of their job.