The following Employment Tax guidance note by Tolley in association with Paul Tew provides comprehensive and up to date tax information covering:
Employee recognition by an employer can be an important motivational tool, as well as having a positive effect on an employee’s desire to remain with the company or organisation. Most employer awards made to an employee are liable to be treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are given as a ‘reward’ by reason of the employment. However, subject to certain conditions being satisfied, a specific tax exemption exists for long service awards.
Long service awards made to employees to mark long service are exempt from PAYE provided the following conditions are satisfied:
ITEPA 2003, s 323
The exclusion of money excludes common payment types such as cash, cheques, National Savings Certificates and premium bonds. Most non-cash awards are like
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