March 28th, 2017

Tax Question of the Week

 

Question

I’ve been told it is possible to give an employee £1,000 tax free as a long service award. Is this correct?

 

Answer

No, but it’s possible to make tax free non-cash awards to employees with no less than 20 years’ service provided the value of the award doesn’t exceed £50 for each year of service for which the employee is being rewarded (which is probably the source of the £1,000 figure you were given).

The rule doesn’t apply if there has been a previous award by the same employer in the previous 10 years.

(I’m not far short of my 20 year service – wonder what I’ll get?!)

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Limited Companies

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Director

John manages a wide portfolio of owner managed businesses and oversees the smooth operation of the firm’s payroll department.

After obtaining his degree in mathematics from the University of Liverpool, John joined Jonathan Ford & Co in 2004 and qualified as a chartered accountant four years later. John likes to keep abreast of developments in tax and accounting and is responsible for the mentoring of junior staff.

Outside of work, John enjoys powerlifting and is a Liverpool FC season ticket holder.

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