The sole director of a client company has just asked me if he can have £1,000 tax free as a long service award (20 years service). I can see that this is available to employees (up to £50 per year of service) but can't seem to find anything that includes or excludes a sole director of a close company. Can anybody help?
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Helpsheet 207
Long service awards Long service awards made to directors and employees as testimonials to mark long service where the service is not less than 20 years and no similar award has been made within the previous 10 years. These have to be: • tangible articles of reasonable cost, or • shares in an employing company (or another company in the same group). The cost of an article is taken as reasonable where it does not exceed £50 for each year of service.
And nothing to stop the farce of a sole director and shareholder obtaining tax relief on making an award to his own self?