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HMRC internal manual

Employment Income Manual

Tax treatment of fire officers: part-time fire officers (retained members): long service bounty scheme

A long service bounty scheme provides for part-time members of fire brigades to receive bounty payments on completion of 10, 15, 20, 25, 30 and 35 years’ service. Part-time members who have completed 15 years’ service and who leave between bounty points receive a proportion of the next bounty due.

The bounty payments are chargeable to tax in the year of assessment in which they are paid. They are taxable employment income (see generally EIM00510 onwards).The scheme does not satisfy the requirements of Section 323 ITEPA 2003, which exempts some long service awards from a charge to tax (see EIM01500).

Regarding the application of PAYE in the case of part-time fire officers, see EP9596.