Income Tax (Earnings and Pensions) Act 2003 section 323A

Trivial benefits provided by employers

Section 323A sets out the conditions under which small benefits provided by employers to employees (or members of their family or household) are exempt from income tax.

• The benefit must not be cash or a cash voucher and must cost no more than £50 per person
• The benefit must not be provided through a salary sacrifice arrangement or any other contractual obligation
• The benefit must not be given as a reward or incentive for work performed or anticipated
• Where the employer is a close company and the employee is a director or office-holder (or their family/household member), the total trivial benefits in the tax year must not exceed the employee's available exempt amount