PTAX - Taxable Benefits - Long service awards

Charlay Registered Posts: 16 Regular contributor ⭐
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?



  • Charlay
    Charlay Registered Posts: 16 Regular contributor ⭐

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

    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.
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