SE22900 - Benefits: treatment of benefits which are trivial in amount

Section 154 ICTA 1988

In some cases you may be asked by an employer to treat a benefit as exempt from tax, on the grounds that the cash equivalent of the benefit taxable on the employee (or on each of the employees concerned if there is more than one of them) is so trivial as to be not worth pursuing. This is sometimes referred to as 'de minimis' grounds.

There is no general statutory limit below which benefits are not taxable. However that does not mean that you should insist that every trivial benefit should be included on a P11D or included in a PAYE Settlement Agreement, irrespective of the administrative burdens on both the employer and the Inland Revenue in handling P11Ds and PSAs.

When considering requests use common sense bearing in mind the guidance at SE22910. Strike a balance between sensible practical administration of the tax system and the need to deter employers from providing what is in reality part of the remuneration of their employees in a form which seeks to exploit that practical administration.

Do not discriminate against large employers by seeking tax in circumstances where you would not if only a few employees were involved.

See SE22920 for what to do if you agree to the employer’s request.

See Employer Compliance Memo TS27/00 for guidance on what to for back years in a case where the employer has not brought trivial benefits to the Revenue’s attention.