tax on a prize

[Andrewsykes1]

Hi i entered a competition at work a few weeks ago and i won the 1st prize �250 after winning this i got told it would go on to my wage, ive just recieved my wage slip and i have been taxed on it !!! my question is can you be taxed on a prize ??? there was no notification on the entry rules, previously competition winners have always won the amount stated but in high street vouchers !!! any help would be appreciated.

[Oneeyedvic]

High St Vouchers are not taxable - neither are Travellers cheques (unless tax rules have changed - definitely a posiibility)

Money going into your wages are. So are any monetary prizes. At a company I used to work for, I won various prizes and all were taxed from a bottle of Jack Daniels through to a weekend away at a posh hotel.

Even meals out by the company *should* be subject to tax (though HM Revenue elect to ignore Xmas meals).

[Andrewsykes1]

Thanks for the replies on the subject. I was a bit miffed as I was expecting �250 and had thought how to spent it, thinking it would be Vouchers like the previous times. Never mind eh (better than M&S vouchers like the previous time I won).

[mangetoute]

wo andrew dont go slaging of m&s vouchers if my other half see this she'll blow a gasket (personaly my self your spot on ,better the funds than vouchers any day specialy m&s).

[Oneeyedvic]

I once won �400 worth of M & S vouchers - don't particularly like the clothes so spent it all on alcohol - very funny watching the cashiers face as I bought 6 bottles of whisky and 6 bottles of vodka (buy 12 bottles 10% off)!!!

About 6 months ago, I thought about giving an incentive to my customers - �10 worth of vouchers - I phoned up a company who did them and was informed that they actually cost more than �10 to buy - amazing! Needless to say, we didn't use the company!

IAP - thankyou for the compliment ;-)

[Andrewsykes1]

It was the first time I'd ever gone in the store and probably the last but that's what I spent the M&S vouchers on!!. A bottle of Champagne and er er er That was it ! never mind the head ache after was worth it

[Postdog]

I don't understand this. I work for Royal Mail, and locally for many years they have had a thing called the carers club. Money is deducted - at source - to enter a monthly draw, and that money provides the prize funding and the funds to local charities. Our winnings are always paid by cheque (top prize �1000 a month) and no deductions are made for tax.

[WendyS]

Yes, officially you are due to pay tax on the prize or any other income you receive from your employer. However at my previous company, where we used to give cash awards for special performance, or for long service awards for example, the company would account for these sums annually to the Inland Revenue so that the employee wasn't penalised. If this was a work competition to come up with new ideas for efficiency or productivity or for good attendance/performance I think it would be worth asking your employer if they would pay the tax. If it was just a "fun" competition, then I think you should accept that it's reasonable to pay tax on it.