Long Service Awards & Tax

I'm posting this on behalf of Rachel Trowsdale:

Can anyone advise me on the tax implications of long service awards? Last year we introduced long service awards in the form of high street vouchers (£500 for 10 years, £1000 for 20 and £1500 for 25) and I looked into the tax implications of this... However, a senior manager over-ruled me, believing there were none.

The auditors have now raised this as an issue. The manager who over-ruled me has conveniently denied all knowledge.

I am just interested to hear how others deal with this and would appreciate any advice.

Thanks,

Rachel

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Replies

  • Hi Rachel great question I don't know I'm going to ask my Accountant I think there is a difference if it is cash or vouchers though.  I will report back!

    Sarah

  • Thank you all - much appreciated.

  • We've found some advice from an expert on tax, National Insurance and reporting obligations when providing long-service awards to your employees: https://www.gov.uk/expenses-and-benefits-long-service-awards/overview

    Hope this gives a bit of insight

    Deb

  • We pay our long service awards as a net payment; we pick up tax (which increases cost to employer).

  • We give long service awards in cash. It is taxed.
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