Tax Free Gifting
What Are Trivial Benefits?
Under current UK law, everyone is entitled to £50 tax-free benefits for various reasons that don’t relate to the employee’s performance in their role.
These tax-free benefits are called “trivial benefits” and represent a great opportunity for employers looking to save on Benefit in Kind tax.
Through HMRC’s Trivial Benefits Allowance, you can gift £50 tax-free to your employees for reasons such as a Wedding Gift, Bereavement, Birthday, or any religious festival.
Save Money on Your Tax Bill
If a company spending £100,000 stopped giving financial recognition for taxable reasons (e.g. Long Service, Sales targets, values-based recognition) and instead gave rewards say on every employee’s Birthday, then the Employer would typically save 30% of their tax bill, in this scenario saving £30,000 per year.
The value of the gift must be no more than £50
The gift cannot be given through payroll or in cash
The gift can’t be a contractual agreement
The gift can’t be rewarded against performance
The Perfect Tax-free Gift With Each Person
With Each Person, you can directly issue vouchers to your employee’s inbox in a matter of seconds. Employees can redeem these vouchers both online and in-store in 30 countries across a range of 700+ major retailers and brands. It’s the ultimate convenience and a brilliant way to say thank you for your hard work.
Save Time & Money
These tax-free rewards are simple but powerful and can be easily administered using Each Person. Simply select a gifting 'reason' from a predefined list, categorising the recognition and reward. This way of administering workplace rewards gives employers a full audit trail of their tax liability, which is
a huge benefit when completing PSA agreements for HMRC. Employers save time but crucially can save thousands of pounds each year due to how they classify their rewards making them tax-free.
Contact Us
If you wish to improve your business start by focusing on your most important asset; your employees.
