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Rewarding Yourself

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neversay
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Re: Rewarding Yourself

#159353

Postby neversay » August 13th, 2018, 7:29 pm

melonfool wrote:I've just seen this:

http://www.cheapaccounting.co.uk/blog/i ... -tax-free/

Gin. Gin is under £50. And I bought a new purse last week which was £45.........happy days!

Mel


That's a nice reward! I purchased a £50 Amazon voucher but I hope it doesn't count as 'cash equivalent'.

PinkDalek
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Re: Rewarding Yourself

#159361

Postby PinkDalek » August 13th, 2018, 8:06 pm

neversay wrote:
melonfool wrote:I've just seen this:

http://www.cheapaccounting.co.uk/blog/i ... -tax-free/

Gin. Gin is under £50. And I bought a new purse last week which was £45.........happy days!

Mel


That's a nice reward! I purchased a £50 Amazon voucher but I hope it doesn't count as 'cash equivalent'.


The article links to HMRC's draft [?] guidance in the Employment Income Manual (EIM) 21864 and the relevant part is here:

https://www.gov.uk/government/publicati ... h-vouchers

Is an Amazon voucher a "non-cash gift voucher".

melonfool
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Re: Rewarding Yourself

#159363

Postby melonfool » August 13th, 2018, 8:13 pm

It's not clear, is it - but I would read it that a voucher for a specific thing is non-cash, but one where you have a wide choice (Amazon) is a cash voucher.

So, buy yourself a voucher for a rose bush or a theatre ticket?

Mel

PinkDalek
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Re: Rewarding Yourself

#159366

Postby PinkDalek » August 13th, 2018, 8:25 pm

There's more on what is a non-cash voucher? here https://www.gov.uk/hmrc-internal-manual ... l/eim16030 and here https://www.gov.uk/hmrc-internal-manual ... l/eim16040

I haven't read any of it but I'm not sure your conclusion re Amazon is definitely correct.

neversay
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Re: Rewarding Yourself

#159369

Postby neversay » August 13th, 2018, 8:40 pm

Thanks both, it's usually another gadget that is cluttering the house within a few months.

Incidentally, on Mel's original link there's an interesting comment:

"Here’s the problem. The £300 limit has to cover all the small things that HMRC would regard as a “benefit” as it is there as, essentially, a de minimis reporting requirement. Exploit it in this way and you are exposing yourself to a tax charge on every other tiny “benefit” and, moreover, a penalty for not reporting them. The odd drink after work with staff or celebratory meal? Charging your mobile phone (or even electric car) at work? Even pinching the office stationery for your kids, for goodness’ sake! All of these things and more may be regarded by HMRC as taxable benefits and are tax-free only because the aggregate amount of them is “trivial” (ie. less than £300 in a year). So you need to take great care in exploiting this “loophole” lest you tip the overall figure (including the benefits you probably have not even realised are benefits) over the £300 limit."

I doubt it's enforced but it makes sense to use at least part of the £300 as a buffer rather than a target... ;)

melonfool
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Re: Rewarding Yourself

#159373

Postby melonfool » August 13th, 2018, 9:08 pm

I don't use any of those 'allowances'. And, seriously 'pinching stationery from the office' (i.e. from yourself!?) really?

Anyway, 6 bottles of gin for me it will be :)

(I can only use so many purses)

Mel


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