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Tax and NI
16. Other Tax Opportunities
16.1 An ordinary employee given a low interest loan by the company receives a benefit, which is normally taxable as income.
- However, for loans up to £5,000, there is no tax payable.
16.2 No tax is payable on long-service awards up to a specified value.
- The value can be up to £50 for each year of service.
- To qualify the employee must have served for 20 years.
16.3 Annual staff parties (or similar celebrations) paid for by the employer are tax free up to a specified limit.
- The cost must not be more than £150 per head a year.
16.4 Employees who receive shares under a tax-favoured share scheme are not taxed until they sell the shares.
- Where employers offer Share Incentive Plans (SIPs), employees can use up to £1,500 of salary each year, free of tax and NI, to buy shares.
Labels: Tax
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