Trivial Benefits: A simple way to reward staff tax-free

If you want to give small, occasional gifts to your team without triggering tax or National Insurance, the trivial benefits rules are worth knowing. When used properly, they allow you to show appreciation without extra admin or cost.

What counts as a trivial benefit?

To qualify, each benefit must:

• Cost £50 or less per item (not averaged across multiple gifts)

• Not be cash or a cash voucher

• Not be part of a salary sacrifice or contractual entitlement

• Be given for non-work reasons (e.g. birthdays or celebrations)

If these conditions are met, the benefit is tax-free and doesn’t need to be reported to HMRC.

Directors of close companies

If you're a director of a close company (typically one with five or fewer shareholders), you can receive up to six trivial benefits per tax year. Each one must still meet the criteria above.

Corporation Tax relief

Your company can also claim Corporation Tax relief on the cost of trivial benefits, potentially saving up to 25%, depending on your profit level.

Examples that qualify

• A bottle of wine for an employee’s birthday

• A meal out to celebrate a team milestone

• A small gift to mark a personal achievement

  
  

These gestures can boost morale and show appreciation, all while keeping things simple and compliant.

At BlueFox Accounting, we help businesses make the most of tax-efficient ways to support their teams. If you’re unsure whether a gift qualifies or want to build a staff rewards policy that aligns with your values, we’re here to help.