With Christmas nearly upon us you may be thinking about rewarding your staff for all their hard work in 2019. As an employer you have certain tax and National Insurance obligations to fulfil on any bonuses paid.
If you decide to give cash as a Christmas bonus you’ll need to add the value to your employee’s other earnings and deduct PAYE tax and Class 1 National Insurance through payroll.
If you prefer to give gifts/goods to your employees at this time of year you can give what is called a trivial benefit if it falls into the below categories.
If the above doesn’t apply you will need to pay tax on the gifts.
For more information on this topic and all your accountancy needs and advice, whether you are an established business or a start up CWR is the accountancy firm for you. Contact us on 01524 67371.
We would like to wish you a Happy Christmas from all at CWR Accountants.