PSA1060 - Overview of PAYE Settlement Agreements: Interpretation of 'minor'
PSA1050 explains that a payment of expenses or benefits in kind can be included in a PSA if it is 鈥榤inor鈥� as regards the sums paid or the type of benefit provided. This section aims to help you to interpret that term.
In agreeing with employers what may be included in a PSA you must take into account the nature of the item and the circumstances in which it was paid.
There are no pre-set monetary limits to define the valuation of 鈥榤inor鈥�. You must use objective judgement to decide whether an item is minor in value. The list below is provided to assist you in making a judgement, it shows examples of what may constitute a minor item.
- incentive awards
- reimbursement of late night taxi fares outside s248 ITEPA 2003
- personal incidental expenses in excess of the statutory daily limit
- present for an employee in hospital
- staff entertainment, for example a ticket for Wimbledon
- use of a pool car where the conditions for tax exemption are not satisfied
- subscriptions to gyms, sports clubs etc
- telephone bills
- gift vouchers and small gifts
This list is for illustrative purposes only it is not exhaustive.
Note. Items that are regarded as trivial benefits should not be included in a PSA, however if a benefit cannot be considered to be trivial it may be considered to be minor and suitable for a PSA. For further guidance on trivial benefits see PSA1090.