What is an HMRC trivial gift?

What is an HMRC trivial gift?

As you will be aware, HMRC tax certain gifts to staff. Instead, you should consider giving your staff the following which have been stated as “trivial” by HMRC:

Small gifts

As an employer, you may provide an employee with a small gift, such as a box of chocolates or bouquet of flowers.

As long as this is made in recognition of a particular event (e.g. an employee’s marriage or birth of a child), and is not part of any reward for services, the benefit should be treated as trivial.

Tea and Coffee

As an employer, you may provide your employees with access in the workplace to tea, coffee or water from a cooling dispenser. If this refreshment is available generally to all employees, the benefit is exempt from charge.

Seasonal gifts

As an employer you may provide employees with a seasonal gift, such as a turkey, an ordinary bottle of wine or a box of chocolates at Christmas.

If the gift extends beyond one of the items mentioned above, for example from a bottle or two to a case of wine, or from a turkey to a Christmas hamper, you will need to consider the contents and cost before being able to determine whether the benefit is trivial.

If you are in any doubts then talk to us – Omni Chartered Accountants are on hand to help guide you through in tax matters for your business, however ‘trivial’ they may be.

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