Employer taxed prize

flea72

OHs employer recently ran a competition to promote health in the workforce. Everyone wore pedometers and whoever walked the most steps won.

His prize was a £100 gift voucher. He has now received a tax form detailing it as a work related benefit. Is this right?

If so, do we now have to declare it as income for tax credit purposes, too?

TheCyclingProgrammer

If it was a cash prize it would be treated as earnings but as its a voucher only redeemable for goods or services then it should probably be reported on your P11D.

According to the following it's treated as earnings for the purpose of NIC but not for income tax

http://www.hmrc.gov.uk/payerti/exb/a-z/v/vouchers.htm

No idea how it affects tax credits, sorry.

OhReally_2

flea72 wrote: »

OHs employer recently ran a competition to promote health in the workforce. Everyone wore pedometers and whoever walked the most steps won.

His prize was a £100 gift voucher. He has now received a tax form detailing it as a work related benefit. Is this right?

If so, do we now have to declare it as income for tax credit purposes, too?

If he's been taxed (as opposed to just having to pay NI) on the award then he needs to disclose this for tax credit purposes.

But there's a buffer of several £1000 before he needs to report it this year.