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Categories explained: Staff Rewards πŸ† πŸ₯‡
Categories explained: Staff Rewards πŸ† πŸ₯‡
Steven Anderson avatar
Written by Steven Anderson
Updated over a week ago

These occasional rewards could include things such as a bottle of champagne for winning a new client or an employee of the month gift card. This category differs from the employee benefits section in that the employer will pay tax on them through a PSA rather than the employee having to on a P11D.

What's included

When you purchase a bottle of MoΓ«t for your employee as a thank you that you don't want them to pay the tax on.

A voucher for the employee of the month that the company will pay tax.

What's not included

Any benefit in kind that you wish the employee to pay tax on should be dealt with via one of the employee benefits categories.

For example a car purchased for the employee or the payment of their health insurance.

How is it taxed?

Corporation tax relief is available but a benefit in kind may arise on anything deemed 'non trivial'. For expenses in this category the employer will pay tax on them through a PAYE Settlement Agreement (PSA). A PSA allows a company to make one annual payment to cover all the tax and NI due on minor, irregular or impracticable expenses or benefits for your employees.

Tax tips

All salary, pension, bonus and NIC payments must be made within 9 months of your year end to qualify for tax relief. Where they are not, then the deduction can only be taken when they are paid. Please remember to review this account for items to be reported on your PSA (due by 31 July) or P11D (due by 6 July).

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