It's Not Trivial
Support an increase to the trivial benefit allowance
It's Not Trivial
Support an increase to the trivial benefit allowance
Introduced in 2016, the Trivial Benefits Allowance (TBA) is a government tax exemption that allows employers to give small, non-cash gifts to employees without incurring tax or National Insurance charges.
Every gift must meet all four of the following criteria:
This allowance was intended to encourage employers to reward their teams with small tokens of appreciation. It’s a valuable way to support employees!
But after nearly a decade with no increase to the £50 cap, the value of the Trivial Benefits Allowance has been eroded by inflation.
The £50 tax-free cap on small benefits has not changed since the Trivial Benefits Allowance was introduced. This has eroded its value by more than 20%!
We’re proposing allowing employers to give up to five non-cash gifts per employee per year, up to a total annual value of £1,500. We are calling for a targeted intervention from HM Treasury, asking them to make this increase at the Autumn Budget.
This change will allow employers to continue rewarding their employees, increase the tax-free support employees can receive, and boost local economy spending.
The £50 Trivial Benefit is stuck in 2015
Inflation has eroded its impact by over 20%
Uprating the TBA limit from £50 to £1,500 per employee annually will have a positive impact on three key economic areas aligned with Government priorities.
Uprating the TBA is the fastest way to get people spending locally. Evidence from our members shows gift card redemptions drive high street footfall:
86%
of people spend more than a gift card’s value
33%
spend 100–125% more than the value
€7m
In Letterkenny, Ireland, where the benefit cap is €1,500, a local gift card programme drove €7m in 2024 sales (80% corporate-driven).
A higher-value, tax-free benefit dramatically increases local economic impact, employee satisfaction, and business engagement.
Reforming the TBA would put pounds in the pockets of millions of workers across the country, helping them during a time of increased financial pressure. Employees overwhelmingly prefer a tax-free gift card over cash taxed through payroll:
83%
of employees prefer a £50 gift card tax-free vs £50 cash taxed through payroll
92%
of workers believe employers should do more to support them during the cost-of-living crisis
58%
of employees with financial worries don’t tell their employer – TBA gifts offer discreet support
A change to the TBA can play a pivotal role in the Government’s ambition of unlocking productivity and improving workplace practices for UK employees, as well as supporting businesses.
The TBA is already a proven tool for supporting employers and rewarding staff. This small policy change of uprating the cap to £1,500 will provide a significant contribution to the Government’s push for productivity.
Evidence of TBA’s success as an employee engagement tool includes:
89%
of UK employers already use the TBA scheme; over 50% use it multiple times per year
80%
of organisations have changed their reward strategy in the past 12 months
69%
of employees think their employer could improve incentives; 50% don’t feel valued
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Contact Us* All data points on this page have been sourced from GCVA members.