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Paying tax on a company prize

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  • 07-02-2014 6:19pm
    #1
    Sulkin
    Registered Users Posts: 46 ✭


    Hi there,

    Bit of a tricky one. I was lucky enough to win "a car" to the value of 15,000 at my Christmas Party. I have the choice as to whether I take the cash equivalent (which I know will be taxed as it will be put through as part of my salary) or if my employer buys me a car. I am just wondering, does anyone know what tax I would be subjected to if I decided to go with a car? Lets say a 2012 car selling at 15,000. I am not sure what tax my employer is subjected too and what I am? I can ask them too but wanted a neutral opinion before making my (fortunate) decision.

    Any help is greatly appreciated
    Tagged:


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    #2
    The_Bot
    Registered Users Posts: 92 ✭✭The_Bot


    Sulkin wrote: »
    Hi there,

    Bit of a tricky one. I was lucky enough to win "a car" to the value of 15,000 at my Christmas Party. I have the choice as to whether I take the cash equivalent (which I know will be taxed as it will be put through as part of my salary) or if my employer buys me a car. I am just wondering, does anyone know what tax I would be subjected to if I decided to go with a car? Lets say a 2012 car selling at 15,000. I am not sure what tax my employer is subjected too and what I am? I can ask them too but wanted a neutral opinion before making my (fortunate) decision.

    Any help is greatly appreciated

    Tax liability should be the same whether the prize is in cash or in kind (i.e. a car). Key issue is whether the prize is received by reason of your employment, which if yes bring it within the PAYE system (which appears to be the case).

    What your employer might be doing is providing the benefit net of payroll taxes i.e. the 15k is a net of tax benefit and your employer has decide to suffer the PAYE liability on the prize. If that's the case the you should have no further liability


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    #3
    Sulkin
    Registered Users Posts: 46 ✭Sulkin


    Thank you for that!

    The prize was a draw at work that I won so I assume from what you're saying it has to go through PAYE! would the PAYE liability be the same whether the company or I had to suffer it?


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    #4
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    Did you have to buy a ticket?


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    #5
    Sulkin
    Registered Users Posts: 46 ✭Sulkin


    barneystinson wrote: »
    Did you have to buy a ticket?

    No it was a competition and names were put in a hat


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