If you are looking for a vehicle to extract money from your company in a tax efficient manner you may want to consider a tax free long service award. Employee non-cash (okay it’s not removing money but you’ll get just as much benefit from it as you would from cash) long service awards can be made without tax or National Insurance deduction, if the following are observed:

• The award must be for a minimum of 20 years of service.
• This is an employee award and as such not available to sole traders or partners, but directors receiving a salary in return for their services may also receive such awards tax free.
• The value of the reward must not exceed £50 for each year of service.
• The employee must not have received a long service award within the past ten years.
• The award must be in a non-cash form, a similar cash award would be classed as income. It’s also advisable to avoid awards which are readily convertible to cash, for example shares, precious metals or gem stones.
  

If you are looking for ways in which you can save tax please give Moore Hill Accountants of Warrington a phone call on 01925 830830.