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HMRC internal manual

Employment Income Manual

Particular benefits: exemption for trivial benefits – miscellaneous issues (from 6 April 2016)

Section 210 ITEPA 2003

Note: this guidance has effect for benefits provided from 6 April 2016 onwards. For guidance on HMRC’s approach to trivial benefits for tax years 2015 to 2016 and earlier, see EIM21860.

PAYE Settlement Agreement (PSA)

For practical purposes it may be that small cash and cash voucher benefits can be included in a PSA. Consider whether the benefit is suitable for a PSA, using the flowchart at Annex 3 in the PSA Manual, and bearing in mind the examples suitable for a PSA, as set out in Statement of Practice 5/96.

Remember that a PSA is a voluntary arrangement on the part of the employer and can include items that are minor, irregular or impractical to apply PAYE to, or apportion the value of a particular benefit. However if you are satisfied that a particular benefit is exempt as a trivial benefit there is no need to include it within a PSA or P11D.

Minor benefits

Trivial benefits should not be confused with ‘minor’ benefits, which may be exempt from charge under the powers in Section 210 ITEPA. For example, the provision to employees of welfare counselling advice (EIM21845) or the provision of special equipment to employees with a disability (EIM21846).