PAYE72015 - PAYE operation: payments for PAYE purposes: conditional payments

If an employee's entitlement to a payment depends on a future condition being met, tax should not be deducted until that condition is met.

For example, if a contract says a bonus will be paid for the year ending 31 December on condition that the employee still works for the company on the following 1 June, PAYE should be operated on 1 June.