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Tax Free Gifting

What Are Trivial Benefits?

Under current UK law, everyone is entitled to £50 tax-free benefits for various reasons that don’t relate to the employee’s performance in their role.

These tax-free benefits are called “trivial benefits” and represent a great opportunity for Employers looking to save on Benefit in Kind tax.

Through HMRC’s Trivial Benefits Allowance, you can gift £50 tax-free to your employees for reasons such as a Wedding Gift, Bereavement, Birthday, or any religious festival.

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Save Money on Your Tax Bill

If a company spending £100,000 stopped giving financial recognition for taxable reasons (e.g. Long Service, Sales targets, values-based recognition) and instead gave rewards say on every employee’s Birthday, then the Employer would typically save 30% of their tax bill, in this scenario saving £30,000 per year.

The value of the gift must be no more than £50

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The gift cannot be given through payroll or in cash

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The gift can’t be a contractual agreement 

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The gift can’t be rewarded against performance

The Perfect Tax-free Gift With Each Person 

With Each Person, you can directly issue vouchers to your employee’s inbox in a matter of seconds. Employees can redeem these vouchers both online and in-store in 30 countries across a range of 700+ major retailers and brands. It’s the ultimate convenience and a brilliant way to say thank you for your hard work.

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Save Time & Money

These tax-free rewards are simple but powerful and can be easily administered using Each Person due to having to choose the ‘reason’ from a set of options which categorises the recognition and reward is given.This way of administering workplace rewards gives Employers a full audit trail of their tax liability which is a huge benefit when completing PSA agreements for HMRC. Employers save time but crucially can save thousands of pounds each year due to how they classify their rewards making them tax-free.

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If you wish to improve your business start by focusing on your most important asset; your employees.

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