EIM21863 - Particular benefits: trivial benefits - examples

The guidance at EIM21860 sets out how to determine whether or not a benefit provided to an employee should be regarded as a trivial benefit. Cash benefits, benefits with a money’s worth ( EIM00530) and non-cash vouchers, however small in amount, should not be regarded as trivial.

There are no set rules for determining the type of benefit that is trivial, and there is no set monetary limit below which benefits are deemed to be trivial in amount.

The following are examples of common benefits that can normally be treated as trivial in nature. Trivial benefits are often, but not always, perishable and/or consumable. These are only examples – they are not intended to be an exhaustive list of the benefits that may be regarded as trivial benefits. There will be instances where you have to apply common sense and judgement both to the type and the amount of benefits that may be trivial.

Tea and coffee

An employer may provide its employees with access in the workplace to tea, coffee or water from a cooling dispenser. If this refreshment is available generally to all employees, the benefit is exempt from charge ( EIM21670). If the exemption does not apply, you should accept that these refreshments represent a trivial benefit.

Small gifts to employees

An employer may provide an employee with a small gift, such as an arrangement of flowers. As long as this is made in recognition of a particular event (e.g. an employee’s marriage or birth of a child), and is not part of any reward for services, the benefit should be treated as trivial.

Seasonal gifts

An employer may provide employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas. All of these gifts are considered to be trivial and as such are not taxable. For an employer with a large number of employees the total cost of providing a gift to each employee may be considerable, but where the gift to each employee is a trivial benefit, this principle applies regardless of the total cost to the employer and the number of employees concerned. . If a benefit is trivial it should not be included in a PSA ( EIM21861).

If the gift extends beyond one of the items mentioned above, for example from a bottle or two to a case of wine, or from a turkey to a Christmas hamper, you will need to consider the contents and cost before being able to determine whether the benefit is trivial.

In such cases you should treat all the factors objectively and use your judgement.