Capital Bond Gift Vouchers - Taxable??

Beakatron

Hoping someone will know the answer to this. Are capital bond gift vouchers taxable? I have received some through work as part of an incentive but was wondering how this will affect tax?

Thanks in advance

molerat

They will be a taxable benefit but you should normally receive them tax and NI paid, ask your employer.

John_Pierpoint

I used to work for a company that paid out gift vouchers as an incentive related to plant safety.
(this had the effect of eliminating reported on the job accidents as gift time approached:cool:)

It always seemed to be a grey area tax wise.

Is it possible for a corporation to write off small gifts to employees against its Corporation Tax if it can argue that the expense is something "charitable" like education?

A similar situation existed with "long service " awards = male/female "jewellery" that incorporated the company logo (eg cuff links)?

olivetti

John_Pierpoint wrote: »

I used to work for a company that paid out gift vouchers as an incentive related to plant safety.
(this had the effect of eliminating reported on the job accidents as gift time approached:cool:)

It always seemed to be a grey area tax wise.

Is it possible for a corporation to write off small gifts to employees against its Corporation Tax if it can argue that the expense is something "charitable" like education?

A similar situation existed with "long service " awards = male/female "jewellery" that incorporated the company logo (eg cuff links)?

It's not a grey area at all it is taxable and liable to NIC:

http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sc&r.l4=1083349863&r.l1=1073858808&r.lc=en&r.l3=1083116187&r.l2=1083106843&r.i=1083349901&type=RESOURCES&itemId=1083349986&r.t=RESOURCES

John_Pierpoint

What a shambles of "de minimis" legislation and micro government by an executive that consumes/redistributes nearly 50% of the nation's GDP.
http://www.thefreedictionary.com/de+minimis+non+curat+lex

My recollections of 30 years ago, is that one year, the one when I was given a sun lounger (yipee), there was some sort of fuss by the "higher paid", (and in those days you needed to be higher paid to get caught by higher tax) as new regulations had been brought in, that taxed them on their sun lounger.

China descended into 500 years of mediocrity, when their bureaucracy invented this sort of thing:

nd-of-year forms at a glance: P9D, P11D, P11D(b) NICs on non-cash vouchers

A significant range of non-cash vouchers are exempt from NICs. These include vouchers for:

• travel between home and work on a work bus
• social functions, such as a Christmas party, up to £150 per head
• the first £55 per week of childcare

This is a selective list. For a full list see pages 26-27 of HMRC's publication CWG2, "Employer Further Guide to PAYE and NICs".
With the exception of these exempt vouchers, you are responsible for deducting NICs if you provide a non-cash voucher to an employee or if you arrange for another business to provide one. You must add the value of the award to the employee's gross pay and work out the Class 1 NICs due on the total in the normal way.
In general, if another business provides one of your employees with a non-cash voucher without you arranging it, then you do not need to worry about the NICs due on the award. It is the third party's responsibility to pay the NICs owed. These will be Class 1A NICs, associated with benefits in kind, rather than the Class 1 NICs due on gross pay.
There is an exception for vouchers provided by a third party in connection with payments to employees of readily convertible assets (these are explained in another guide - see the link below). In these cases it doesn't matter who arranged the award. As the employer you will always be responsible for adding the value to gross pay and deducting NICs.