Chapter EIM21868

Published date22 May 2014
Record NumberEIM21868
Section 323A(9) ITEPA 2003

Note: this guidance has effect for benefits provided from 6 April 2016 onwards. For guidance on HMRC’s approach to trivial benefits for tax years 2015 to 2016 and earlier, see EIM21860.

The guidance at EIM21864 sets out the qualifying conditions that determine whether or not a benefit provided to an employee is exempt from tax as a trivial benefit.

One of the conditions that has to be satisfied before the trivial benefit exemption can apply is that 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). Therefore, if the benefit has been provided in recognition of services, including as a reward for services and because of something they have had to do as part of their employment duties, it should be taxed in the normal way.

Typically, trivial benefits include benefits provided solely for staff welfare purposes such as a bunch of flowers on the birth of a child or a bereavement. Benefits provided in recognition of services provided such as long service awards and social events as a team-building event or as a thank-you for good results in the year will not qualify as trivial benefits. However, another exemption might apply in particular circumstances.

Example H

Employer H requires its employees to work through their lunch hour and provides them with lunch. The meal has been provided because of the work they are undertaking. The benefit does not satisfy the requirement that it is not provided in recognition of particular services performed by the employee and so the exemption does not apply.

Example I

Employer I runs a call centre and gives £25 gift...

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