The government has announced that benefits worth £50 or less, paid for by the employer, will no longer trigger tax and national insurance for employees.
Up until now HMRC has used its discretion to determine what sort of benefits-in-kind are trivial and should be exempt. The problem is that there has been no clear rule.
It has often been difficult to determine whether a benefit is trivial. Leavings dos, taxi rides and stationary have all caused confusion – although there is a general exemption for Christmas parties.
The changes should meant less headaches for employers and employees alike.