Are awards taxable?

We periodically have peer nominations for awards - i.e. best performer as nominated by other members of staff - this can be for any reason of their own (X was very helpful on project, or great colleague to work with etc.) The winners are then given an award. Does this count as "Employee Incentive Award" and as such is taxable? Are the only awards not subject to income tax: long service and indiscriminate "everyone gets £50 for Christmas" awards?

Hi ,
 

Please see : Employee incentive awards   . Thank you .

Hi, The page you referenced does not define an "incentive award" - to me an incentive award is something like you sold x cars this month here's an award. Whereas I am asking about peer recognition awards i.e. "I think Mr Smith was really great and should be recognised for this with an award" Would the peer recognition still be classed as "Incentive award"? Thanks

Hi ,
 

There is still an incentive for your employees to perform well, as those who do so can be nomiated by their peers to receive an award.  Your employees know if they perform well and reflect certain behaviours, you as the employer will potentially reward them.  It doesn't make a diffeence that their peers are influencing who the employer gives the award to, as the employer is still giving the award. Should an employer operate such a scheme and the award is cash, this is simply added to the employee's pay for PAYE tax and National Insurance purposes.  If a third party makes the awards e.g. a car manufacturer paying awards to the car salesperson with the most sales, then they would need a Taxed Award Scheme (  TAS  ). Thank you .