Home For AAT student members AQ 2013 AAT Level 4 (Level 8 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


PTAX - Taxable Benefits - Long service awards

CharlayCharlay New MemberRegistered Posts: 16
Hello all,

I have my PTAX assessment tomorrow afternoon (04/12/2014) and I have a quick question about Taxable benfits / exempt benefits, specifically Long Service Awards. Are exempt long service awards restricted to NON-CASH long service awards, or are cash long-service awards also exempt?

I'm studying from the BPP textbooks and there is a discrepancy in their texts. As follows:

From the textbook - "NON-CASH long service awards - for service in excess of 20 years, £50 per year of service is tax free"

From the Question Bank - Long service award of £800 for 22 years service - [answer] - EXEMPT.

To me, that is saying in the textbook that any cash long service award would be a taxable benefit. Then in the answer it states that the cash long service award is exempt. In the question/answer it says "of £800" not "worth £800" so I have to assume that it is cash that is given.

Can anyone set me straight on this?

Thanks
C

Comments

  • CharlayCharlay New Member Registered Posts: 16
    Apologies,

    I'm wasting your time here, the answer is on the gov.uk website:

    https://www.gov.uk/expenses-and-benefits-long-service-awards/whats-exempt


    2. What’s exempt
    You don’t have to report or pay on a non-cash award to an employee if all of the following apply:

    they’ve worked for you for at least 20 years
    the award is worth less than £50 per year of service
    you haven’t given them a long-service award in the last 10 years
    For example, you can give a non-cash award with a value of up to £1,000 for 20 years’ service.
Sign In or Register to comment.