October 17th, 2019.
HMRC reports that neither employer nor employee will have to pay Income Tax or National Insurance Contributions on the cost of an employer-provided benefit, if the exemption for trivial benefits applies. Where the exemption applies employers will not be required to report these benefits to HMRC either in a PAYE Settlement Agreement (PSA), on a P11D or through the Payrolling of benefits in kind.
The following must apply before the benefit qualifies as exempt;
• the cost of the benefit in kind must not be over £50
• the benefit in kind must not be cash, nor a voucher redeemable for cash
• it must not be given as part of salary sacrifice arrangements nor any other contractual obligations
• it must not be provided in recognition for work performed
For more information guidance, visit www.gov.uk