Long service awards: awards not made in cash: partially exempt awards  

Circumstances

Where an award that is not in cash is made to an employee to mark long service with an employer and

  • the award marks at least 20 years service
  • no other long service award has been made to the employee within the previous 10 years and
  • is worth more than £50 for each year of service

Class 1 NICs

No*

PAYE

No*

Enter on P11D

Yes - section A

Class 1A NICs

Yes

Enter on P9D

Yes – section A(2)

Further information

EIM01500, NIM02218 and NIM14310

Tax and NICs are due only on the amount that exceeds the £50 per year of service limit

*Some non-cash awards above the £50 limit attract a PAYE and Class 1 NICs liability. This is because they are readily convertible assets, or payments in kind that are not excluded from Class 1 NICs, see EIM11803 and NIM02020.

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