SE11245 - Incentive Award Schemes: Action by the provider of awards under a Taxed Award Scheme

When a provider of incentive awards has signed a Taxed Award Scheme contract, the contract obliges him to:

• Make a return of awards to the Tax Office dealing with his PAYE
• Account for tax at either basic or higher rate on the grossed up value of the awards
• Give each employee who gets an award under a higher rate scheme a certificate showing the grossed up value and the tax accounted for. Where a scheme is for basic rate, certificates need only be issued to employees who require them.