If you don’t pay attention they could find that they incur hefty bills, say leading accounting and tax advisory firm BlickRothenberg.
Robert Salter, a Specialist at the firm said: “it is easy for employers to inadvertently break the rules and create unforeseen tax and NIC liabilities. A real life bah humbug to Christmas and the season of goodwill to all!!
He added: “ For example cash bonuses and gift vouchers can be treatedas “regular salary” and subject to PAYE and NIC.
“ Even cash gifts from 3rd parties to your employees can be regarded as “earnings” for tax and NIC purposes and may need to be reported on the payroll, though this will depend upon the precise “nature” of the payment. For example, a payment which is genuine present like a bottle of wine or a hamper should not be taxable.”
Photo by Lore Schodts on Unsplash
