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Post Info TOPIC: Tax implications for bonus schemes
Wella


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Tax implications for bonus schemes
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Basically if they are cash equivilent vouchers, they are treated as income and taxed NI'd as if paid in coin of the realm

http://www.hmrc.gov.uk/helpsheets/hs201.pdf

Tells you more detail

Edit: Forgot to add that in Sage I would post it some where in the gross wages/ salaries section

HTH

Bill

 



-- Edited by Wella on Wednesday 23rd of May 2012 06:04:57 PM

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choccly-pops


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Hi All, 

 

The company that I do the accounts for are wanting to pay bonuses to the sales team, but as John lewis vouchers rather than as a payment in their wages. Does anyone know what the tax implications are for this and whether it needs to be recorded anywhere other than just on SAGE under staff incentives?



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choccly-pops


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Thanks Bill, that helps a lot. Do I need to take the tax & NI off, and if so how do I do that? If not, any ideas who does do it? If this info is in the website you gave then don't worry, I'll take a look, I just haven't had chance to browse as yet.



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Stardoe


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Hi there. As Bill said, if they are cash equivalent vouchers then they should be included in the wages payments as an additional payment (i.e. I would show them separately on the wage slip). This way the tax and ni should be taken care of by the payroll software

Hope this helps.

Pauline

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Pauline
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