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I suspect that the OP wants to give the employee some extra money as a reward hence the bonus. But if there is probably no way to minimise the tax consequences for the company without going to a really creative accountant.yep- give them time off instead
The tax consequences for the company are that they will pay less tax and slightly more NI. The employee will have to pay tax and NI on the bonusI suspect that the OP wants to give the employee some extra money as a reward hence the bonus. But if there is probably no way to minimise the tax consequences for the company without going to a really creative accountant.
Under the paye scheme a bonus is no different than an extra salary so I can't see what difference it will make to either the employer or the employee how the payment is labelled.The tax consequences for the company are that they will pay less tax and slightly more NI. The employee will have to pay tax and NI on the bonus
Under the paye scheme a bonus is no different than an extra salary so I can't see what difference it will make to either the employer or the employee how the payment is labelled.