Are giftcards taxable?

callum9999

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Why not pay your entire salary in gift cards then? 

subjecttocontract

callum9999 said:

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Why not pay your entire salary in gift cards then? 

At the risk of stating the obvious.....you can't pay your mortgage or many other everyday expenses with gift cards. 

MDMD

subjecttocontract said:

callum9999 said:

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Why not pay your entire salary in gift cards then? 

At the risk of stating the obvious.....you can't pay your mortgage or many other everyday expenses with gift cards. 

If they are exchangeable for goods and services they are taxable.  HMRC don’t care what they are used for.

https://www.gov.uk/expenses-and-benefits-vouchers/what-to-report-and-pay

although long service awards can be exempt

subjecttocontract

MDMD said:

subjecttocontract said:

callum9999 said:

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Why not pay your entire salary in gift cards then? 

At the risk of stating the obvious.....you can't pay your mortgage or many other everyday expenses with gift cards. 

If they are exchangeable for goods and services they are taxable.  HMRC don’t care what they are used for.

https://www.gov.uk/expenses-and-benefits-vouchers/what-to-report-and-pay

although long service awards can be exempt

I don't care what they are used for either......I was just responding to the question of why one doesn't get their entire salary paid in gift cards.

callum9999

subjecttocontract said:

MDMD said:

subjecttocontract said:

callum9999 said:

forwardnotbackwards said:

At my place of work they hand out gift cards for long service and rewards. The finance manager when questioned once says if you gave a £100 gift card you can have the full amount but if it was £100 in cash then would have tax taken off.

Gift cards can't be converted to cash so you don't have to declare it 👍

Why not pay your entire salary in gift cards then? 

At the risk of stating the obvious.....you can't pay your mortgage or many other everyday expenses with gift cards. 

If they are exchangeable for goods and services they are taxable.  HMRC don’t care what they are used for.

https://www.gov.uk/expenses-and-benefits-vouchers/what-to-report-and-pay

although long service awards can be exempt

I don't care what they are used for either......I was just responding to the question of why one doesn't get their entire salary paid in gift cards.

I think you know full well what was meant by that question... On the off chance you aren't being flippant, why not have 25% of your salary paid out in gift cards?