While reviewing our client’s latest records we spotted that they have given a gift on retirement to a long-standing employee.
If the employment has lasted more than 20 years are we able to claim exemption from income tax charges for the employee as a long service award even though the gift is on retirement?
The value of the gift is small so would be easily covered by the £50 a year of service limit.
My client company took over the business five years ago so I am assuming that the employment with the previous owner of the business will count towards long service under TUPE arrangements. Is that correct?
I look forward to hearing from readers.
Query 19 748 – Retiree.
If the gift is money it is taxable under PAYE as earnings.
Retiree refers to a ‘gift’ being made on retirement and to its value. I...
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