Tax Exemption for Trivial Benefits in Kind

[lucybrown162]

Hi

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.

[bd6759]

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.