In addition to benefits which relate to workplace equipment and facilities (see E4.1209) or relate to the health and wellbeing of the employee or their family (see E4.1211), other provisions may be considered which are more in the nature of a general benefit, intended to incentivise the employee to perform their duties well or to remain in employment. These include the following:
Award and suggestion schemes
Employee participation in the business can be encouraged by formal award and suggestion schemes. In particular, tax and NICs-free awards can be made, up to £5,000, if the implementation of the idea is of substantial actual or anticipated financial benefit to the business.
The employer may choose to pay a higher award than the amount allowed under the tax exemption, in which case the employer may also pay the income tax and any primary Class 1 NICs attaching to the award
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Web page updated on 17 Mar 2025 16:46