A practical guide for HR decision-makers reviewing employer-funded benefits, including how HMRC’s £50 trivial benefits exemption operates.*
Updated for the 2025/26 tax year (as at February 2026). *Subject to statutory conditions and individual circumstances. This guide is for general information only and is not tax advice.
HR teams often review health benefits through a wellbeing and engagement lens. Tax treatment and reporting obligations can also affect overall cost, administration and employee perception of value, particularly where benefits are treated as taxable Benefits in Kind.
Class 1A National Insurance may apply where benefits are taxable under standard BIK treatment.
Benefits may require P11D reporting or payrolling, depending on how your organisation operates benefits.
Employees may be liable for income tax on the value of taxable benefits at their marginal rate.
A structured, plain-English resource designed to support HR-led benefit reviews. For full detail and implementation considerations, the complete guide explains each area step-by-step.
*Subject to statutory conditions, correct implementation and individual circumstances.
Important information
This page and guide are provided for general information only and do not constitute tax, legal or financial advice. Tax treatment depends on individual circumstances and correct implementation of HMRC statutory conditions. Employers should seek independent professional advice before relying on any exemption. Rates and guidance may change.
If you need the full detail and implementation considerations, access the 2026 guide and receive the download link by email.
© 2026 BHSF Group Limited. Registered in England & Wales: 04767689. 54 Hagley Road, Birmingham, B16 8PE. BHSF Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. BHSF Employee Benefits Limited is authorised and regulated by the Financial Conduct Authority. BHSF’s mental health services are not regulated by the Financial Conduct Authority nor the Prudential Regulation Authority.
