My experience with SMEs since the introduction of the exemption in 2016 is that, fortunately, they are not aware of the trivial exemption of performance, so they either included elements in their PPE or they completely ignored them! They do not have to pay taxes on benefits and expenses covered by concessions or exemptions, and there is no need to include them in a tax return. You can learn more about PAYE billing agreements on GOV.UK. HMRC will approve an PPE in which amounts or benefits are made available to workers and the amounts or benefits are: the employer`s short guide to trivial benefits simply states that the exemption is reasonable: “This is not in the terms of the contract.” This is repeated in the August Employers` Bulletin, when HMRC says, “Is there a contractual obligation to provide the benefit? A good test is whether your employee would have legal reasons to object if you didn`t do the job. From April 2018, the annual epip contract renewal process has been simplified, so employers are not required to agree to a PSA with HMRC each year if the categories remain the same. Under the agreement, the EPI will remain in place until the employer or HMRC terminates or amends it. If you are considering items to be included in an EPI, be sure to identify all costs that may be exempt, including trivial benefits. B, long service bonuses, annual parties, work-related training, staff proposals, meals in the workplace, etc. Of course, there are a large number of rules and regulations that will come to the study of such potential exceptions, so they need to be examined in detail on the basis of the particular circumstances. HMRC`s technical information on employment benefits is available in the Labour Income Manual from page EIM21600. There is a brief guide to employment benefits that are GOV.UK for workers. An PPE is a very effective simplification of spending and benefit processes that allows you to reduce reporting obligations, ensure adequate management of HMRC compliance and assist in employee compensation, as they do not receive taxes or NIC on articles contained in the EPI.