In the UK, you can give employees a gift without it counting as a taxable benefit, as long as you stay within HMRC's "trivial benefits" rules. This article explains the £50 exemption and shows 12 gift ideas that comfortably stay under it.
The trivial benefits exemption: £50 per gift
A gift to an employee is exempt from tax and National Insurance if it meets all four conditions of the trivial benefits exemption under Section 323A ITEPA 2003:
- Cost no more than £50. This is the cost to you of providing the benefit (including VAT), not its resale value. If you give the same gift to a group and can't work out the exact cost per person, you can use the average cost per head.
- Not cash or a cash voucher. A non-cash voucher (a retailer gift card, for example) is fine; cash or anything directly exchangeable for cash is not.
- Not contractual. The gift can't be something the employee is entitled to as part of their employment contract, including under salary sacrifice.
- Not a reward for work. It can't be given in recognition of, or anticipation of, particular services performed by the employee — that would make it earnings, not a trivial benefit.
All four conditions must be met. If any one of them fails, the exemption doesn't apply and the full value of the gift becomes a taxable benefit-in-kind, not just the amount over £50.
The £300 cap for company directors
If you're a director (or other office holder) of a "close company" (broadly, one controlled by five or fewer shareholders, or by its shareholder-directors), the same £50-per-gift rule applies, but there's also an annual cap: trivial benefits to directors and their family or household are limited to £300 in total per tax year. Employees who aren't directors of a close company aren't subject to this annual cap — only the £50-per-gift limit applies to them.
12 gift ideas under £50
1. Hoodie – The Rex: the flagship piece
A heavyweight 280 gsm organic cotton hoodie employees actually wear, and one of the most popular gifting items in the catalogue.
- Material: 90% organic cotton, 10% polyester.
- Branding: embroidery, print, or patches.
- Order: MOQ 100 · from £40.09/unit.
2. Sports Socks: the safe favourite
Sunday's most-ordered item, a small, unexpected gift that always lands well.
- Material: 80% cotton, 17% polyamide, 3% elastane.
- Branding: knitted-in logo zones.
- Order: MOQ 100 · from £4.00/unit.
3. Recycled Steel Bottle: everyday hydration
Vacuum insulation in recycled stainless steel, a gift that gets used and seen every day.
- Material: recycled stainless steel.
- Branding: laser engraving or print.
- Order: MOQ 50 · from £11.00/unit.
View the Recycled Steel Bottle →
4. A5 Notebook: FSC-certified paper
An A5 hardcover with elastic closure and ribbon marker, practical with a traceable material story.
- Material: FSC-certified paper, PU cover.
- Branding: debossing or print on the cover.
- Order: MOQ 100 · from £4.58/unit.
5. Premium Tote Bag: the lightweight carry
A heavyweight cotton tote with a premium feel, everyday enough to actually get used.
- Material: 270gsm cotton.
- Branding: print or custom straps.
- Order: MOQ 100 · from £6.44/unit.
6. Knitted Scarf: the cosy extra
A high perceived-value item, ideal for a winter or year-end gift.
- Material: 80% viscose, 20% polyester.
- Branding: woven label.
- Order: MOQ 100 · from £7.66/unit.
7. Baseball Cap: the everyday accessory
An affordable, highly visible accessory that works all year round.
- Material: 100% cotton.
- Branding: embroidery.
- Order: MOQ 100 · from £8.34/unit.
8. Espresso Mug: for the morning coffee
A compact espresso-sized mug, a small everyday object that sits on the desk.
- Material: ceramic.
- Branding: print.
- Order: MOQ 108 · from £8.44/unit.
9. Bamboo Tea Bottle: the natural choice
A bamboo exterior over a durable stainless steel interior, a warmer alternative to an all-metal bottle.
- Material: stainless steel, bamboo.
- Branding: laser engraving or print.
- Order: MOQ 50 · from £18.70/unit.
10. Wireless Powerbank: useful everyday tech
A magnetic wireless powerbank in recycled ABS plastic, genuinely useful for any commute or business trip, and still comfortably under the £50 limit.
- Material: recycled ABS plastic.
- Branding: pad print or digital print.
- Order: MOQ 50 · from £18.39/unit.
11. RollTop Backpack: the everyday bag
A water-resistant backpack with a laptop compartment that quickly becomes someone's everyday bag, still within the £50 exemption.
- Material: GRS-certified recycled PU, water-resistant.
- Branding: print or embroidery.
- Order: MOQ 25 · from £24.57/unit.
12. Noise-Cancelling Headphones: the premium pick
A higher-end gift that still fits comfortably under the £50 threshold, and makes a real difference to a busy workday.
- Material: recycled ABS, ANC + ENC, foldable.
- Branding: digital print or doming.
- Order: MOQ 50 · from £24.46/unit.
What about gifts to clients?
The trivial benefits rules only apply to employees. For gifts to clients or business contacts, two separate rules matter:
- Corporation tax deductibility. Gifts to non-employees generally aren't deductible, unless the gift carries a conspicuous advertisement for your business, costs no more than £50 per recipient per year, and isn't food, drink, tobacco, or a voucher exchangeable for goods.
- VAT. You don't need to account for output VAT on business gifts to the same person as long as their total cost stays at or under £50 (excluding VAT) in a 12-month period. If that £50 threshold is exceeded, VAT becomes due on the full cumulative value, not just the excess.
Want more ideas? Browse the full list in 20 gift ideas for UK employees under £50.
Common mistakes
- Treating £50 as a soft limit. It's a hard cliff-edge: go even slightly over and the whole gift becomes taxable, not just the amount above £50.
- Forgetting the £300 director cap. Directors of close companies are subject to both the £50 per-gift rule and a £300 annual total — ordinary employees only need to watch the £50 limit.
- Mixing up employee and client gift rules. Trivial benefits (employees) and the VAT/deductibility rules (clients) are separate regimes with separate conditions.
Note: this article is a general explainer, not tax advice. Thresholds and rules can change — confirm how they apply to your business with your accountant.
Order gifts for your team
Every product above is fully customisable with your branding and available in business order quantities. Browse the full range in the Sunday catalogue to put together a gift that stays within the £50 exemption.
