Trivial benefits and staff gifts

Dec 2020 : Christmas parties (including "virtual" parties) and gifts [1]

Christmas 2020 will be unlike any other. HM Revenue & Customs (HMRC) have accepted this and provided some clarification for employers around the tax treatment of gifts and parties (including “virtual” parties).

Please see this additional guidance note that summarises the key points for Institutions/Schools, etc. who may be considering providing either Christmas gifts or parties, to ensure no additional, unintended costs are incurred.

Tea and coffee for employees or small gifts to employees in recognition of a particular event (e.g. flowers for birth of a child) are regarded as trivial benefits. Other items may be regarded as trivial if they are less than £5 in value or are infrequent supplies e.g. water, biscuits and newspapers. These will not need to be reported on the P11D.