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

gift.cards Editorial Board

Internal legal & fiscal review

Last reviewed

1 March 2026

Trivial Benefits exemption (ITEPA 2003 s.323A)

Next scheduled review

1 March 2027

Annual verification cycle

Verified against official sources — 1 March 2026Editorial standards & methodology →

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.
Open-loop Visa/Mastercard prepaid cards are treated as cash vouchers by HMRC and are fully taxable — only closed-loop retailer or limited-network gift cards qualify.

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.

Which brands qualify in this market?

These closed-loop brands typically qualify under the tax rules in United Kingdom. Pick a brand for the B2B PDP with ordering details.

Watch out for these open-loop options

Marketplaces and prepaid cards are usually treated as taxable income in United Kingdom. See the brand PDP for details.

Use the estimator below

Is this tax-free?

CountryRecipient

Amount per person (GBP)

Occasion

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.

Read the country guide →

Open the full calculator for United Kingdom →

Primary sources

ITEPA 2003 s.323A (legislation.gov.uk) ↗
Verified 1 March 2026
HMRC EIM21863 — Trivial benefits ↗
Verified 1 March 2026
HMRC guidance — Expenses and benefits: trivial benefits ↗
Verified 1 March 2026

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.

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