11/12/2025
What Are Trivial Benefits?
Trivial Benefits are small, non-work-related gifts that your company can provide to you (as a director) or your employees without triggering income tax or National Insurance.
To qualify, each benefit must:
โข Cost ยฃ50 or less per item.
โข Not be cash or a cash voucher.
โข Not be a reward for work or performance.
โข Not be part of a contractual entitlement.
Examples include small gifts, meals, flowers, chocolates, gift vouchers (non-cash), or celebration treats. ยฃ300 worth of Trivial Benefits per tax year (maximum of six benefits at ยฃ50 each).
https://www.gov.uk/expenses-and-benefits-trivial-benefits #:~:text=You%20don't%20have%20to,for%20their%20work%20or%20performance
HMRC Rules for Christmas Parties and Staff Gifts (2025)
This guide explains how UK businesses can provide Christmas parties and seasonal gifts to employees while remaining tax-efficient and compliant with HMRC rules.
Staff Christmas Parties & Social Events
HMRC allows a tax exemption for annual staff events, but only if:
1. The event is an annual function (e.g., Christmas party).
2. It is open to all employees (or all staff at a location).
3. The total cost does not exceed ยฃ150 per head, including VAT.
Cost per head must include food, drink, entertainment, venue hire, transport, accommodation, and any guests attending.
If a business holds multiple events, the exemption can apply to any combination as long as the total does not exceed ยฃ150 per person.
If the limit is exceeded by even ยฃ1, the entire amount becomes taxable, not just the excess.
https://www.gov.uk/expenses-benefits-social-functions-parties
If youโd like to prepare now or participate in early testing, please contact us.
Quick Consultants Ltd - Accountants & Tax Consultants
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