An employee is awarded a bonus of £1,000 for the year ended
31 March 2005, payable on 30 April 2005. The employee asks the
employer to pay the £1,000 to a specified charity and the
employer does so on the payment date. The £1,000 is chargeable
on the employee in 2005/06 and the employer must operate PAYE at
the time of payment. This is simply an application of the
employee's own remuneration.
The position would be the same if, for example, if the employee asked the employer to pay the money to a building society to pay off part of the employee's mortgage.
An employee gets into financial difficulty and the employer decides to help out the employee by paying their domestic gas and electricity bills. The employer does not expect repayment, so the payments are not a loan. These are "pecuniary liability" payments that are taxable earnings of the employee (see EIM00580). However they are not treated as money payments for PAYE purposes, because they are not paid out of remuneration due to the employee (see EIM00590).