Small Christmas gift for your PA can be covered by trivial benefit exemption

December is upon us and you may be thinking about giving your PA a small gift for Christmas, such as a box of chocolates or a bottle of wine. Did you know you can provide this on a tax-free basis? Read on to find out more.

The trivial benefits exemption means that employers have, since 6 April 2016, been able to make gifts of up to £50 each to their employees completely free of tax and also without having to contact HMRC at all to tell them about the gift. (Employers will be expected to keep their own records of trivial benefits made to employees.)

The law says that the benefit is exempt from tax if all the following conditions are satisfied:

  • the cost of providing the benefit does not exceed £50.
  • the benefit is not cash or a cash voucher.
  • the employee is not entitled to the benefit as part of any contractual obligation (including under salary sacrifice arrangements).
  • the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties (or in anticipation of such services).

You can find out more about trivial and other tax-free benefits on our website.

(20-12-2018)