Trivial Benefit Exemption

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Trivial Benefit Exemption
From 6 April 2016 Trivial Benefit Exemption rules came into effect for PAYE taxpayers.

The new rules are as follows:-

• The cost of the benefit does not exceed £50

• The benefit is not in cash or a cash voucher

• There is no entitlement to the benefit through h the employee’s contract not in recognition of services performed.

Where the company is a Close Company (most small Owner Managed Businesses are) then the exemption is capped at £300 in each tax year.


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