Staff Incentives

[Sysman]

That seemed to be the deal, get taxed if added as wages or full value if vouchers. Long time ago mind.

Three hundred quid of vouchers bought a lot of booze in the 70's.

Back in the seventies there were a lot of things like that and given the high income tax rates at the time, there probably had to be, or the peasants bosses would have revolted.

History of taxation in the United Kingdom: From the Second World War

In 1971 the top rate of income tax on earned income was cut to 75%. A surcharge of 15% kept the top rate on investment income at 90%. In 1974 the cut was partly reversed and the top rate on earned income was raised to 83%. With the investment income surcharge this raised the top rate on investment income to 98%, the highest permanent rate since the war. This applied to incomes over £20,000 (£155,247 as of 2013),[5]. In 1974 750,000 people were liable to pay the top-rate of income tax.

[Troll]

Back in the seventies there were a lot of things like that and given the high income tax rates at the time, there probably had to be, or the peasants bosses would have revolted.

History of taxation in the United Kingdom: From the Second World War

Wanna check that link again?

[Sysman]

Wanna check that link again?

Ta. Fixed.

[vetran]

Just watching the Queen documentary, they were talking about the jazz album which they made in France due to 98% tax, yet 30 years later the government still has difficulty with such ideas.

[SueEllen]

Wait till he gets the tax bill....

Did wonder how this works - permie colleague at ClientCo got £500 in High Street vouchers for being employee of the year or sommat. Presumably she gets taxed on that? Bit of a pain if you're given a gift you didn't ask for worth £500 and get a tax bill of £200.

No tax on vouchers for either party last time I checked as long as they are for generic shops i.e. not any shops/retailers who just sell alcohol or tobacco.

I did a temp years ago and when we hit a milestone we got vouchers as we weren't taxed in them. The managers explained they were tax free for us.

I've also done various surveys since over the years and been offered a choice of x pounds in cash or y pounds in vouchers, and the vouchers have always been at least 20 quid more.

Finally about 2 years ago I got various people to do work for me and gave them M&S vouchers. My accountant explained before I did it that there was no addition tax on them for either party although they counted as payment for services. (Got M&S vouchers as I knew people could get food, alcohol or undies with them.)