💡 Trivial Benefits: A Tax-Free ‘Treat’ for Company Directors

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As a director of a limited company, it’s easy to get caught up in the admin and forget to take advantage of the small perks available to you. One of those is the trivial benefits exemption — a simple, tax-free way to treat yourself or your employees.

🧾 What Are Trivial Benefits?

Trivial benefits are small gifts or perks given by the company that don’t need to be reported to HMRC or attract tax or National Insurance, provided they meet certain criteria.

✅ The Rules

To qualify as a trivial benefit, all the following must apply:

  • It costs £50 or less (including VAT)

  • It’s not cash or a cash voucher

  • It’s not a reward for work or performance

  • It’s not in the terms of the employee’s contract

If it ticks all those boxes, it’s tax-free and doesn’t need to be reported on a P11D.

👔 What About Directors?

If you’re a director of a close company (that is, a limited company run by five or fewer shareholders), there are a few extra things to keep in mind:

  • The £50 per benefit rule still applies

  • You can receive up to £300 worth of trivial benefits per tax year

  • That £300 limit is per director, not per company

So yes — you could treat yourself six times a year to a £50 benefit and still stay within the rules.

🎁 Ideas for Trivial Benefits

Here are some ideas to inspire you:

  • A gift card (not exchangeable for cash) to your favourite coffee shop

  • A bottle of wine or a food hamper

  • Flowers or chocolates

  • A cinema voucher

  • A birthday or Christmas treat

Just remember: it must not be a reward for work done — it’s meant to be a nice, no-strings-attached gesture.

⚠️ Common Mistakes to Avoid

  • Giving a cash bonus – that’s not trivial

  • Using the benefit as a thank you for hitting a target – that makes it taxable

  • Going over the £50 limit – even by a penny, the whole amount becomes taxable

🧮 Need Help Tracking It?

As your accountant, We can help you keep a simple record of your trivial benefits to make sure you stay within the rules and don’t accidentally trigger extra tax.

If you’d like to make the most of these tax-free treats or have questions about what qualifies, feel free to get in touch — We’re here to help!

Hawkins & Co Accountants & Bookkeepers Ltd