With the holiday season just around the corner, it’s the perfect time to spread some festive cheer in the workplace. While Christmas bonuses and holiday parties are common ways to show appreciation, there’s another lesser-known way to reward employees during the holiday season: trivial benefits. These small perks can boost morale without breaking the bank or requiring complicated tax paperwork. Here’s everything you need to know about trivial benefits and how to make the most of them this Christmas.
To qualify as a trivial benefit, HMRC require that the gifts meet a few specific criteria:
The item or benefit should be of low value, typically under £50. The benefit cannot be cash or a voucher exchangeable for cash and it cannot be something the employee is contractually entitled to. The benefit should not be linked to performance, attendance, or given as a ‘reward.’
These criteria help ensure that trivial benefits remain small gestures rather than bonuses or compensation!
Why give Trivial Benefits at Christmas?
Trivial benefits help make employees feel appreciated without making a huge dent in the budget. They can serve as thoughtful gestures to show that management values and appreciates employees’ hard work over the year.
Ideas for Christmas trivial benefits
If you’re considering introducing trivial benefits for the holiday season, here are some popular and practical options to make your employees feel appreciated:
Holiday hampers
A small basket filled with chocolates, treats, and festive goodies is a perfect holiday gift. It’s thoughtful, seasonal, and bound to be enjoyed by employees and their families.
Festive fizz
Think along the lines of a festive bottle of wine, a holiday-themed hot chocolate mix, or even a mini bottle of champagne. This can be a simple but welcome gesture to bring holiday cheer to your employees.
Gift cards
A low-value gift card to a coffee shop, bookstore, or popular retailer can be a practical choice. Just ensure it falls under the trivial benefit limit and cannot be redeemed for cash.
Christmas lunch voucher
Another good gift idea is a lunch voucher for a festive meal away from the office! It’s a way to encourage employees to take a well-deserved break and enjoy a seasonal treat. In addition to this, you could treat employees to a work meal out!
Personalised Christmas cards or E-Cards
A simple but meaningful gesture is to send personalised holiday cards or e-cards, containing a small gift card or voucher inside as an added surprise.
How to make the most of trivial benefits at Christmas
Here are a few tips to help you maximize the impact of your holiday trivial benefits:
1. Be thoughtful with your choices by adding that personal touch!
2. Keep it fair and consistent by ensuring employees receive similar gifts.
3. Keep track of expenditure and thresholds, to ensure you’re remaining tax compliant.
4. Present gifts thoughtfully by thanking employees individually.
Trivial benefits are an excellent way to add a personal touch to your holiday giving, and the festive season is the perfect opportunity to show appreciation for your team. Gifts can boost morale, improve the company’s culture in the workplace and all without additional tax liabilities!
So this Christmas, why not consider incorporating trivial benefits to celebrate the season with your employees in a meaningful, affordable, and tax-friendly way?
Get in touch today if you would like to know mote about trivial benefits and how you can make these work for your business this Christmas! Email us at info@future-cloud.co.uk or give us a FREE call on 01636 337069!
