NCVS Volunteering Development Officer, Dave Thomas, has had a number of conversations about giving volunteers Christmas presents. The issue often arises around Volunteers’ Week as well, so he’s done some digging and makes these observations.
As Christmas approaches, many leaders of volunteers want to thank their teams for their time and dedication. This often leads to questions like, 'Can we give gifts or host a festive meal? Could it have any tax or benefit implications for our volunteers?'
While the UK Government's trivial benefits rules apply only to employees, the guidance they offer can help volunteer leaders make informed decisions.
What are trivial benefits?
In the workplace, trivial benefits are small, tax-free gifts employers can give to employees under certain conditions. For a benefit to be considered trivial, it must meet these rules:
- Value: It costs £50 or less
- Purpose: It’s not a reward for work or performance
- Type: It’s not cash or a cash voucher
- Expectation: It’s not something the employee is entitled to under their contract
For example, a small gift like a box of chocolates or a meal voucher under £50 typically qualifies as a trivial benefit.
How is this relevant to volunteers?
Volunteers are not employees, so the trivial benefits rules don’t directly apply to them. Volunteers give their time freely, and their work is not paid or contractually rewarded. However, two key points should guide decisions about giving gifts or hosting meals for volunteers:
- Tax and Benefit Considerations
Regular or high-value gifts could risk being treated as income, which might affect a volunteer’s tax position or entitlement to benefits.
- Defining Volunteer Status
Providing gifts or meals that resemble employment perks could blur the line between being a volunteer and an employee.
Using trivial benefits as a guide
Even though the rules don’t apply to volunteers, they can provide a useful framework:
- Keep gifts small and occasional: A small seasonal token, like a box of biscuits or a festive card, is unlikely to cause issues
- Avoid giving cash: Non-cash gifts are less likely to affect tax or benefits
- Be clear on intent: Ensure that any gift or meal is seen as a gesture of appreciation rather than a reward for work
- Be mindful of individual circumstances: Volunteers receiving state benefits may need extra care to ensure gifts won’t impact their entitlements
Ideas for festive thank-yous
If you’re looking for thoughtful ways to thank your volunteers without creating complications, here are some suggestions:
- A simple social event: Host a festive gathering with tea and mince pies
- Personal thanks: Handwrite notes to acknowledge individual contributions
- Meaningful tokens: Choose small, practical items, such as a reusable mug or diary
Final thoughts
The rules around trivial benefits provide helpful insight but don’t apply to volunteers directly. By keeping your gestures of thanks modest, occasional, and free of obligations, you can show your appreciation without risking any unintended consequences for your volunteers.
Simple, thoughtful gestures go a long way in showing volunteers how much their time and effort are valued. Always consider their individual circumstances and seek advice from us at NCVS if you’re unsure.
What are your plans for the festive season? Or is it too early to be discussing?
Dave may be gearing up for his yearly role as Santa, but all this talk of Christmas? Not yet!
