Overview of PAYE Settlement Agreements
An employer may ask you to treat a benefit as exempt from tax on the grounds that thecash equivalent (Section 203(1) ITEPA 2003) of the benefit taxable on the employee(s) isso trivial it is not worth pursuing.
For instance a seasonal gift from an employer to their employees at Christmas of a turkey,a box of chocolates or a bottle of wine should be regarded as trivial, regardless of thenumber of employees involved and the overall cost to the employer. There is no requirementfor an employer to return these benefits on formP11D/P9D.
It follows that where it is considered that such items are trivial benefits theymust not be included in a PSA.
For further guidance on the subject of trivial benefits see EIM21860 onwards.