Employees greatly appreciate recognition, with research indicating that 78 per cent of managers highly prioritise timely acknowledgment of their efforts by their employer. Globally, it is estimated that employers spend over £36 billion on employee reward and recognition programmes.
One important aspect of these is the ‘instant reward’ scheme where an employee receives a gift or a voucher as immediate recognition of a job well done. Employers will therefore be interested to learn that a dispute between HMRC and technology giant General Electric (GE) has been referred to the Court of Justice of the European Union (CJEU) for a ruling on the VAT position of such rewards.
Source RSM
