Long service award - vouchers - tax treatment

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Could someone please clarify whether all vouchers can't be given tax free, or are ones that aren't directly  exchangeable for cash, e.g high street or holiday vouchers, allowable provided they are under £50 per year of service?


Many thanks

Replies (3)

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By paul.benny
09th Apr 2024 11:56

You could search for yourself on gov.uk.

But to save you that onerous task, non-cash long service awards are tax-free after minimum of 20 years' service, at least 10 years apart and £50/year.

Retail gift vouchers are considered non-cash.

Thanks (2)
By asddsa
09th Apr 2024 12:08

Perfect, thank you for your reply. You've confirmed what I thought.

It was the definition of cash voucher that I couldn't find clarification on gov.uk and various other websites weren't clear (including a tax specialist firm that said gift vouchers weren't allowable), as well as some replies on other questions/threads on here.

Thanks (0)
Replying to asddsa:
By FactChecker
09th Apr 2024 14:02

Love to know name of tax specialist firm that said gift vouchers weren't allowable (and the context in which they said that)?

But to be clear, there are few vouchers that are explicitly cash vouchers nowadays ... mostly they are loosely referred to as retail vouchers (for use only with a specified retailer, or group of them, or even service provider).
The confusion arises because some of those do have an option (probably only in certain circumstances) for the holder to be reimbursed in cash (maybe after charge has been deducted) ... which leads to discussion over cash/non-cash status!

However in your case, IF all the criteria are met within the Long-Service 'rules' (i.e. recipient had at least 20 years service and no previous award in the last 10 years and award is for no more than (£50 x no of years service), then it doesn't matter even if the award is a readily convertible asset.*
[* = but definitely not including NS&I Savings Certificates or Premium Bonds]

Thanks (3)