From the 6th April 2016 a trivial benefits exemption will become law and set at limit on the benefit of £50 per employee per benefit.
There will be an annual cap of £300 for directors and other office holders of close companies and members of their families and households who are employees of the company.
Its designed for seasonal gifts, flu jabs, small gifts, flowers etc.
- It can’t be cash, or cash vouchers.
- The employer must bear the cost (salary exchange won’t work)
- It must not be in recognition of services or part of a contractual agreement
For years the definition of ‘trivial benefit’ has been undetermined and it was a massive grey area but now we have some definite rules to work to.