Boiler Manufacturer Reward Schemes and Taxation
If you are a heating installer, you may be registered to boiler manufacturer schemes such as Vaillant Advance , Baxi Works etc. Under these schemes you are able to accumulate points or cash rewards to be used to purchase various items such as vouchers, branded merchandise, tools, cheques etc.
As a general rule what you need to know is that if you receive cash or a cash equivalent such as the business cheque, you as a business are liable to account for the tax due for the specified amount. If you receive a products or other non-cash items, these will most likely have had their tax accounted for by the provider, in this case the provider would be the Manufacturer rewards scheme.
Another aspect is distributing these rewards to employees. Ie gifting them the vouchers or products. Under these circumstances these items count a benefits in kind and are used to provide a gain to the employee. If the gain is non-cash ie vouchers etc, you are required to add the reward amount to the employees salary in order to calculate Class 1 National Insurance (NI) due. If the reward is passed on as cash ie cheque etc you are required to also account for PAYE and Class 1National Insurance.
After having checked with Vaillant, they have stated that only their business cheques are liable for you to pay your own tax. As taxation is an industry on it’s own, it is always advisable to check with your accountant or a professional to determine if you are exempt from paying further tax on these rewards.