From April 2016, where trivial benefits are provided to employees they may be exempt from tax if certain conditions are met. The conditions are: the cost of providing the benefit does not exceed £50 the benefit is not cash or a cash voucher the employee is not entitled to the voucher as part of a contractual arrangement (including salary sacrifice) the benefit is not provided in recognition of particular services performed by the employee as part of their employment duties where the employer is a 'close' company and the benefit is provided to an individual who is a director, member of their household or their family, then the exemption is capped at a total cost of £300 in a tax year. If any of these conditions are not met then the benefit will be taxed in the normal way subject to any exemptions or allowable deductions. One of the main conditions is that the cost of the benefit is less than £50, if the cost is above £50 the full amount is taxable, not just the excess over £50. The cost is the cost of providing the benefit to each employee not the overall cost to the employer. Where the individual cost for each employee cannot be established, an average could be used. Further details on how the exemption will work, including family member situations, are contained in the Government guidance. However if you are unsure please do get in touch before assuming the trivial benefit you are about to provide is covered by the exemption. Internet link: GOV.UK