The trivial benefits exemption allows employers to make modest gifts to employees and directors tax and NI free. You should notify those to whom you make such gifts of their tax and NI-free status.
Tax-free rewards
A benefit provided to employees that costs an employer no more than £50 is exempt from tax and NI. Subject to the conditions explained below, the tax and NI exemption can apply to as many perks as you want to give your employees. If a perk is already exempt, e.g. the firm’s Christmas party, that exemption takes precedence over the trivial benefits exemption.
Aside from the £50 limit, the perk must not be:
Use our Letter to Employees Regarding Trivial Benefits to notify employees what trivial benefits they have received in the tax year.