Trivial benefits are small, non-cash rewards employers can give to employees tax-free, provided they meet three key criteria:
They cost £50 or less per benefit
They are not cash or cash equivalents
They are not provided as part of contractual obligations or salary sacrifice
These benefits are exempt from Income Tax and National Insurance, making them a simple, cost-effective way to recognise employees.
While the £50 limit per benefit has been in place since 2016, it has not kept pace with inflation or rising business costs.
This presents several challenges:
Reduced purchasing power: What £50 could buy in 2016 is significantly different today
Limited flexibility: Employers may struggle to provide meaningful rewards within the threshold
Missed engagement potential: Smaller rewards can have less impact on employee satisfaction
Simply put, the current cap is increasingly out of step with modern workplace expectations and economic realities.
An increase in the trivial benefit cap would bring meaningful advantages for both employers and employees:
Stronger employee engagement: Being able to give more generous, meaningful rewards helps businesses create a culture of appreciation and recognition
Greater flexibility for employers: A higher cap allows organisations to tailor rewards more effectively without needing to navigate complex tax implications
Support for employee wellbeing: Small but thoughtful gestures can make a big difference, especially during periods of financial pressure
Boost to the UK economy: Raising the cap would help stimulate spending through gift cards and vouchers, supporting retailers and the wider economy
The Gift Card & Voucher Association (GCVA) is actively campaigning for the UK government to increase the trivial benefit limit, ensuring it reflects today’s economic environment.
Their key objectives include:
Raising awareness of the issue among policymakers
Demonstrating the value of trivial benefits to UK businesses
Advocating for a revised cap that aligns with inflation
As a member of the GCVA, Voucher Express fully supports this initiative and believes it represents a positive step forward for employers and employees alike.
Businesses and HR professionals can play an important role in driving change. Here’s how you can get involved:
Raise Awareness Internally: Share knowledge about the current cap and its limitations with your leadership and HR teams
Engage with Industry Bodies: Follow updates from the GCVA and participate in discussions or surveys where possible
Use Trivial Benefits Strategically: Continue to make the most of the scheme, demonstrating its value and reinforcing the case for reform
At Voucher Express, we specialise in flexible, effective reward solutions that help businesses engage and motivate their people, including those that fall within the trivial benefits framework.
Whether you’re recognising milestones, rewarding performance, or simply saying “thank you,” our range of digital and physical gift cards makes it easy to deliver meaningful rewards.
The trivial benefit scheme remains one of the simplest and most accessible tools for employee recognition in the UK. However, without adjustment, its effectiveness will continue to decline. By supporting the GCVA campaign, we can collectively advocate for a change that benefits employers, employees and the wider UK economy.
Now is the time to modernise the trivial benefit cap and ensure it continues to deliver real value in today’s workplace.
