Trivial benefits

Our experts tell you everything you need to know about this type of benefit

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s tax regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

What is a trivial benefit?

If the benefit you provide to your employees is considered to be a trivial benefit by HMRC, you don’t need to report it to HMRC or pay any additional tax or National Insurance as a result.

If all of the following apply, HMRC considers your benefit to be a trivial benefit:

  • If it cost £50 or less for you to provide
  • If it isn’t cash or a voucher
  • If it isn’t in the terms of their employment contract
  • If it isn’t given as a form of reward for their performance or work

If the benefit you provide meets all of these criteria, it is a trivial benefit and HMRC doesn’t need to know about it. However, if it doesn’t meet these criteria you will need to report it to HMRC and as a result, there may be extra PAYE tax or National Insurance to pay.

If you’re not sure whether the benefit you are providing counts as a trivial benefit, you can contact the HMRC employer helpline on 0300 200 3200 (textphone 0300 200 3212).

If the trivial benefits form part of a salary sacrifice arrangement, they are no longer classed as exempt and must be reported to HMRC.

What if you are the director of a ‘close’ company?

A close company is classed as a limited company run by 5 or less shareholders. If you are the director of a ‘close’ company, you can’t receive trivial benefits of a value of more than £300 in any given tax year.

How can DSR Tax Claims help?

We aim to make life as simple as possible for our clients and that includes giving you the information you need to make your taxes (and your life) simpler and less stressful.  Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

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