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Where Taxpayers and Advisers Meet

Tax Exemption for Trivial Benefits in Kind

Posts: 3
Joined: Wed Jun 07, 2017 12:32 pm

Tax Exemption for Trivial Benefits in Kind

Postby lucybrown162 » Thu Jun 08, 2017 9:03 am


We currently pay mileage to our employees at a rate of 46p, which results in a benefit in kind for circa 100 employees who would otherwise not have one. For around 2/3 of these individuals, the benefit is less than £50.

I'm trying to determine whether criteria for these being exempt as trivial benefits are met:

- the cost of providing the benefit does not exceed £50 - satisfied
- the benefit is not cash or a cash voucher - satisfied
- the employee is not entitled to the benefit as part of any contractual obligation - the 46p is not given in any employment contracts, it was determined a number of years ago when fuel costs were particularly high but not put in writing to employees other than by a general communication. Not clear whether this is satisfactory for this condition?
- the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties - probably this condition is not satisfied, but I'd welcome any views on this.

Posts: 3107
Joined: Sat Feb 01, 2014 3:26 pm

Re: Tax Exemption for Trivial Benefits in Kind

Postby bd6759 » Thu Jun 08, 2017 5:08 pm

Why do you say it is not cash? It clearly is a payment of cash. And the employees are entitled to it because you have told them they can claim it.

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