Country guide

Tax-free employee gift cards in United Kingdom

Gift cards up to £50 per occasion are exempt from Income Tax and NIC if they meet all four Trivial Benefits conditions.

Author
gift.cards Editorial
Editorial team, gift.cards
Reviewed by
External counsel — review pending
Last reviewed
1 March 2026
Trivial Benefits exemption (ITEPA 2003 s.323A)

This page is general information based on published rules and was last reviewed on the date shown. It is not tax advice — confirm with your accountant or tax counsel for your specific situation.

The rule in plain language

  • Per-gift cap: £50 including VAT. Going one penny above £50 invalidates the exemption for the whole gift.
  • The card cannot be cash or a cash voucher (a high-street or multi-retailer gift card is fine).
  • It cannot be a reward for work or performance (rules that out for sales incentives or recognition).
  • It cannot be in the employee's contract or under salary sacrifice.
  • Annual cap for directors of close companies: £300 in total Trivial Benefits per year.

Conditions to qualify

  • ✓Cost ≤ £50 incl. VAT.
  • ✓Not cash or a cash voucher.
  • ✓Not a reward for services or performance.
  • ✓Not contractual and not via salary sacrifice.

Recognised occasions

  • Birthday
  • Christmas / festive
  • Marriage
  • Birth of a child
  • Recognition unrelated to performance

Client gifts

Client gifts: VAT can be reclaimed up to £50 of cost per recipient in any 12-month period. Above £50 the gift is treated as a free supply and may trigger output VAT. Branding the gift can preserve deductibility but does not remove the £50 VAT cap.

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Is this tax-free?

Estimated treatment
Likely tax-free

This is typically exempt from income tax and social charges.

  • •Trivial Benefits cannot be contractual or via salary sacrifice.
  • •All conditions must hold simultaneously — review the country page.
  • •This estimator gives general information based on published rules. It is not tax advice — confirm with your accountant for your specific situation.

Not tax advice — see the country page for the full rule and sources.

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Primary sources

Frequently asked

Trivial Benefits exemption (ITEPA 2003 s.323A)

Is an Amazon UK gift card a 'cash voucher'?

No. Cash vouchers are vouchers exchangeable for cash. Retailer-specific cards (Amazon, John Lewis, M&S) are non-cash vouchers and can qualify for Trivial Benefits if the other three conditions are met.

Can I give a £50 card every month?

For most employees, yes — there is no annual cap. Directors of close companies are capped at £300 per tax year across all Trivial Benefits.

What about sales reps hitting a quarterly target?

Performance-linked rewards fail the third condition. They should be processed through payroll or a PAYE Settlement Agreement (PSA) instead.

Country guide

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