How to use trivial benefits in the workplace

When you hear the word “trivial”, what comes to mind? Something playful? Unimportant? Or maybe you’ve never heard of trivial benefits at all. If that’s the case, you’re not alone, but you might be missing out on a surprisingly powerful tool for boosting employee morale. 

Trivial benefits are small, tax-free perks that can make a big difference in how employees feel at work. They’re easy to implement, cost-effective, and often overlooked, but when used well, they can help create a more positive, appreciated, and engaged workforce. 

In this short guide, we’ll break down what trivial benefits are, how they work, and why they’re anything but trivial when it comes to employee experience. 

According to HMRC, a trivial benefit must meet the following requirements: 

• They must cost £50 or less to provide 

• They can't be cash payments or cash vouchers 

• They can't be a reward for work or performance 

• They can't be included in the terms of an employment contract. 

The term 'trivial' relates to the relatively small value of this type of benefit, which means it does not need to be declared to HMRC. 

While there is no limit on how many trivial benefits an employee can receive a year (as long as each benefit does not exceed £50) a limited company with five or fewer 'participants' must not exceed an annual limit of £300 in the tax year. 

What are some examples of trivial benefits? 

If a benefit ticks all the boxes mentioned earlier, it’s considered trivial. That said, anything linked to long service, team-building exercises, or performance incentives falls outside this category. 

Here are a few everyday examples that typically qualify as trivial benefits - small gestures that brighten the workday without raising eyebrows at HMRC: 

• A surprise pizza lunch in the office 

• A bouquet to say “thank you” or “well done” 

• A birthday meal with colleagues 

• A sweet treat left on your desk 

• A bottle of wine to toast a milestone 

• A modest gift card or digital voucher 

These perks may be small, but they go a long way in making the workplace feel more human. 

What are the advantages of giving trivial benefits? 

While modest in monetary value, trivial benefits can have a significant impact on workplace culture and employee wellbeing. These small, tax-free gestures help employees feel recognised and appreciated, which in turn fosters a more positive and engaged workforce. 

Here are some key advantages: 

• Boosts morale and motivation: Regular, thoughtful gestures can uplift team spirit and reinforce a sense of belonging. 

• Improves employee engagement: Companies that consistently recognise their staff see up to a 14% increase in engagement, which is closely linked to productivity and retention 

• Enhances recruitment and retention: A culture of appreciation helps attract top talent and reduces turnover, as employees are more likely to stay where they feel valued. 

• Supports a positive workplace culture: Frequent, informal rewards contribute to a friendly and inclusive environment, which can reduce stress and improve collaboration. 

• Cost-effective and tax-efficient: Trivial benefits are exempt from tax and National Insurance contributions if they meet HMRC’s criteria, making them a budget-friendly way to reward staff. 

• Encourages frequent recognition: Research suggests that smaller, more regular rewards are more effective than occasional large ones in maintaining motivation.  

• Drives business performance: Organisations that excel at employee recognition are up to 12 times more likely to achieve strong business outcomes, and higher engagement levels can increase profitability by 22% 

In short, trivial benefits may be small, but their impact on employee satisfaction and business success is anything but. 

How to make the most of trivial benefits in the workplace 

To maximise the impact of your trivial benefits strategy, consider using platforms like BHN Extras, which offer flexible and scalable solutions for employee gifting. One standout feature is Discounts, which allows companies to provide gift cards at reduced rates, tailored to any budget and suitable for a wide range of employee preferences.  

Let’s look at how to use them effectively to foster a positive work environment and show appreciation in meaningful ways. 

Celebrate seasonal moments 

From Christmas and Easter to Diwali, Rosh Hashanah, and Ramadan, seasonal occasions offer a great opportunity to share goodwill. Small gifts like festive hampers, chocolate treats, summer BBQs, or even a Christmas turkey can make employees feel recognised beyond their performance. Some employers also offer flu jabs as a seasonal health benefit, a thoughtful gesture that supports wellbeing. 

Recognise employee transitions 

Trivial benefits are ideal for welcoming new joiners or bidding farewell to departing colleagues. A modest gift card or personalised token can go a long way in making these moments memorable, without breaching HMRC’s rules. 

Mark personal milestones 

Acknowledging life events, birthdays, work anniversaries, house moves, new babies, or bereavements, with small gifts like flowers or cards helps build a culture of empathy and care. These gestures show that the organisation values the person, not just the role they play. 

Support during tough times 

With the cost-of-living crisis still affecting many households, trivial benefits can offer practical support. A gift card for groceries, fuel, or clothing can make a real difference. As long as it’s not part of a contractual entitlement or linked to performance, these benefits can be given multiple times a year to ease financial pressure. 

Want to unlock the everyday perks of trivial benefits? 

Whether you're recognising a birthday, celebrating a cultural holiday, or simply saying “thank you,” BHN Extras Discounts make it easy to offer meaningful rewards that reflect the diversity of your workforce. With the ability to choose gift card values and retailers, you can personalise the experience while staying compliant with HMRC’s trivial benefit rules. 

This approach not only simplifies the process of giving, but also ensures your recognition efforts are inclusive, versatile, and impactful, no matter the occasion or individual.