Expenses and benefits: third-party awards

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What to report and pay

What you have to report and pay depends on what kind of third-party award your employee receives, and whether you arrange the award.

Cash and cash-exchangeable goods

The third party must deduct PAYE tax from the award and pay it to HMRC.

You must deduct Class 1 National Insurance on the combined value of the award and the PAYE tax paid on it by the third party.

Non-cash goods

If the third party arranges the award

They must:

  • account for the tax due on the award - this should be done by entering a Taxed Award Scheme (see the technical guidance at the end of this guide)
  • pay any Class 1A National Insurance due on the value of the award and on the tax paid on it

In some instances Class 1 National Insurance will be due instead, eg if your employee바카라 사이트™s personal bills are paid on their behalf. In this case you will need to deduct and pay them.

If you arrange the award

In this case:

  • the tax due on the award must still be paid by the third party
  • you must pay any Class 1A National Insurance that바카라 사이트™s due
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