Contributing £25 to staff savings scheme

[russelldriver]

Good afternoon,

We are looking to introduce a savings scheme for staff with the benefit of the employer paying in £25 at the end of 10 months if they continue saving for 10 months. Are there any tax implications on the £25 that would be paid to staff. This could either be paid out as taxable Gross Salary or as an element that is not taxable or NI'able as part of Nett pay.

I just want to understand if this would be allowed.

Thanks,
Russell

 

[WaveJumper]

Welcome to the UKBF several accountants reside on the forum and I am sure they will be along to give a view on this. I am no expert on this. There's no issue with having a company savings scheme for staff in fact I think from past research thats been done on this topic its can be a good method for retaining staff, unfortunately I have a feeling anything paid by an employer is going to fall under some HMRC rules for attracting tax but it will be interesting to hear from the expert advice thats sure to come along pretty soon.

 

[russelldriver]

Welcome to the UKBF several accountants reside on the forum and I am sure they will be along to give a view on this. I am no expert on this. There's no issue with having a company savings scheme for staff in fact I think from past research thats been done on this topic its can be a good method for retaining staff, unfortunately I have a feeling anything paid by an employer is going to fall under some HMRC rules for attracting tax but it will be interesting to hear from the expert advice thats sure to come along pretty soon.

Thanks for the welcome. I just got off the phone to HMRC and they said it is allowed however as long as it goes through the salary as there is no exemption on tax or NI.