Trivial benefits in kind and NIC

Broadly, to qualify for treatment as a trivial BinK the following musts be met:

A – must not be cash or a cash voucher

B – must cost £50 or less

C – must not be provided as part of salary sacrifice or other contractual arrangement

D – must not be provided in recognition of services performed by the employee as part of their employment or in anticipation of such services

This change is effective from 6 April 2016

There is a cap of £300 where the employer is a close company to the employee and the employee is a director or other office-holder, or a member of the family or household of a director or other office-holder of the close company.

Unfortunately the NIC regulations were not amended at the same time so if the benefit in kind would attract class 1 NIC (trivial benefit invoiced to the employee that is paid for by the employer or trivial benefit paid for by the employee and then reimbursed) these will still attract a class 1 NIC liability so will have to be reported through the payroll for NIC purposes if on or before 27 November 2016!

So much for joined up thinking!