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
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).