Whether you’re new to the employee reward landscape or regularly reward your team, we’ve got the ultimate guide to employee Gift Cards in the UK- from physical cards to digital cards, the Trivial Benefit Exemption to why local Gift Cards are so popular. Let’s dive in.
What types of rewards are available as employee gifts?
There are multiple different reward types available for employees, from monetary rewards like bonuses to non monetary rewards like employee discounts and experiences, branded merchandise and much more besides. One of the most popular rewards for employees though is undoubtedly Gift Cards, including physical Gift Cards and digital Gift Cards. Of note, is that digital cards overtook physical cards in popularity for the first time in the UK in 2025. Town & City Gift Cards are increasingly popular as employee gifts. Available as both physical cards that are swiped at the till point or digital Gift Cards that are added to digital wallets (where available), these local Gift Cards combine ease of use with choice and support for local. And for employers, access to local-first, physical and digital cards is enabling them to add a local option to their rewards strategy or employee recognition platform. The ability to add a personalised message from the company in either physical or digital cards adds the personal touch, contributing to positive workplace culture.
Why are employee Gift Cards so popular in the UK?
Gift Cards are ever popular in the UK as a way to reward the hard work of team members. The UK Government’s Trivial Benefit Exemption scheme allows organisations to gift staff a non-cash reward of up to £50 multiple times throughout the year, free of income tax and national insurance, without the need to declare the trivial benefits to HMRC. To qualify as a trivia benefit, it needs to cost the organisation less than £50 to provide, it can’t be a cash payment, or a cash voucher, can’t be a reward for an employee’s work or performance, and it can’t form part of the employee’s contract or regular salary. The Trivial Benefit Exemption equivalent in Ireland is the Irish Revenue’s Small Benefit Exemption scheme which allows companies to gift payrolled employees and directors up to five small non-cash benefits each year up to a value of €1,500, free of tax. A July 2025 ‘It’s Not Trivial’ campaign from the GCVA, and supported by Miconex, founders of the Town & City Gift Card concept, is encouraging the UK government to increase the limit from £50.
Why do employees want Gift Cards in the UK
The value of corporate gifting in the UK is over £7 billion. Of course, one of the main reasons that employees want to receive Gift Cards over cash bonuses is the fact they’ll receive the full benefit of the reward. In 2025 Miconex research, 83% of employees said they’d prefer to receive a £50 tax free Gift Card over £50 cash through payroll. But that’s not the only reason. Studies show that people will treat rewards and incentives given as cash vs. Gift Cards differently, even in the case of the funds being economically identical. There’s the sense that the hedonic value of the Gift Card gives the employee permission to use the Gift Card as they wish, with most positive memories vs. cash paid alongside salary. And they can be a powerful tool in boosting employee morale too with GCVA data finding that 56% of people would be positively influenced by a Gift Card.
What are multi-store Gift Cards?
Multi-store Gift Cards, also known as multi-retailer Gift Cards, are cards that can be spent with more than one retailer and are steadily increasing in popularity as corporate gifts for a simple reason – choice. GCVA data found that 38.7% purchased multi-store Gift Cards in May 2025, up from 37.5% in May 2024, while single brand Gift Cards decreased in popularity. For organisations rewarding employees, multi-store Gift Cards are often seen as thoughtful gifts because they offer employees a variety of brands to spend the reward with, catering to a wide variety of employee preferences. Town & City Gift Cards extend the multi-store concept further as not only can they be spent with stores, they can be spent with hospitality, salons, attractions, hotels and services too, making them both multi-store and multi-sector.
What is the best Gift Card for employees in the UK?
For employee appreciation, the default for many employers can be Amazon Gift Cards but increasingly, UK employers are taking a different route to finding the perfect gift for their staff through Town & City Gift Cards. Available for around 100 towns and cities in the UK, these local Gift Cards are multi-store and Mastercard backed and can be spent with a wide range of local businesses, from shops to restaurants, attractions to hotels, salons to services. Town & City Gift Cards have to be spent in person with local businesses, driving footfall and spend, and allowing UK employers to tangibly demonstrate their company values around corporate social responsibility through their employee recognition schemes, positively impacting company culture.
Why are local Gift Cards popular as employee rewards in the UK?
Shop local has been a powerful force in the UK for many years. The recent challenges placed upon business communities, from the pandemic to the cost of living crisis, has only served to further highlight the importance of local support to ensure the longevity of local businesses. And the need to support local is felt by both employees and their employers. In 2025 Miconex research, 89% of organisations said supporting local businesses was important to their organisation and 94% of employees said it is important that the organisation they work for supports local businesses. Research has also demonstrated the power of Town & City Gift Cards to drive spend into UK towns and cities quickly, with almost 90% of people who receive a Gift Card making a specific visit into the town or city to spend it, typically within 1-3 months. Alongside the support for local, the other key reason local Gift Cards are popular is the choice they offer. As the only Gift Card that offers the big brands they know with the local businesses they love, Town & City Gift Cards allow organisations to give their people unbeatable local choice, catering to individual preferences and a gateway to all kinds of memorable experiences in their local area – from meals out to days out, shopping trips to pampering. In essence, Town & City Gift Cards allow the recipient to choose the right gift for them, from practical uses like buying their Christmas shop to treats like new clothes.
What reasons do employers give Gift Cards in the UK?
There are numerous reasons that UK businesses give Gift Cards to their employees including as part of their recognition efforts, within employee engagement initiatives, to show appreciation for a job or project completed well, to boost job satisfaction, within employee wellness programs or to help create a positive workplace culture or work environment. Other popular reasons for employers to hand out Gift Cards to their team are in celebration of special occasions such as work anniversaries. In 2025 Town & City Gift Card research, the time of year played a large role in when employers reward their people with 39% of employers using the holiday season as a reason to hand out Gift Cards to their staff as Christmas gifts. 35% said they offer Gift Cards year round and 18% at the end of the tax year.
Discover unbeatable local choice for your team with Town & City Gift Cards.