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Making a sacrifice

14 August 2012
Issue: 4366 / Categories: Forum & Feedback
The directors of a company have a very loyal workforce and like to repay this by offering long-standing workers a long-service award. The question has arisen as to whether this could be paid tax efficiently by means of a salary sacrifice

I have a client business that seems to have a very loyal workforce many of whom have been employed by the firm for many years.

The directors like to recognise long service by their employees and generally will make a monetary award about £500 although occasionally they purchase a gift instead.

I was discussing this with the company directors recently and a sudden thought occurred to me. I wondered whether it might be possible for a salary sacrifice arrangement to be used here.

As an example one of their employees has been working for the firm for 20 years and the directors mentioned that they would like to make an award.

This particular employee is interested in country houses and the like and having consulted his work colleagues the directors have decided to buy him a lifetime membership of the National Trust.

The membership...

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