Question about tax rules on Long Service awards from work

katejo

I have just heard that I am getting a Long Service award to the value of £500. I understand why we are not allowed to have cash because of tax rules but why is the university not allowed to buy a travel gift voucher for a chosen travel company on our behalf or  a store gift voucher which doesn't need to be spent in 1 go?  I am not keen on buying a relatively high value item via the University. What happens if it turns out to be faulty and I don't have a receipt to take it back?

BoGoF

Because a voucher is treated the same as cash, that's the rules. No point talking what ifs when you're getting something for free.

Edit to add, they could technically pay you in cash but would be subject to tax/NIC.

katejo

BoGoF said:

Because a voucher is treated the same as cash, that's the rules. No point talking what ifs when you're getting something for free.

Edit to add, they could technically pay you in cash but would be subject to tax/NIC.

I may be getting it for free but ,if it proved to be faulty in some way, I couldn't get a replacement due to no receipt. 

eskbanker

katejo said:

What happens if it turns out to be faulty and I don't have a receipt to take it back?

You presumably advise your employer and ask for their assistance with the faulty item they supplied to you?

sheramber

katejo said:

BoGoF said:

Because a voucher is treated the same as cash, that's the rules. No point talking what ifs when you're getting something for free.

Edit to add, they could technically pay you in cash but would be subject to tax/NIC.

I may be getting it for free but ,if it proved to be faulty in some way, I couldn't get a replacement due to no receipt. 

As your employer would be buying it it would be your employer who would have to deal with any fault claim.