In this section:
- Providing employee expenses and benefits: an overview
- Schemes that reduce expenses and benefits paperwork
- Expenses and benefits A to Z
Prizes - cash prizes for employer-run competitions
Definitions or restrictions
You pay a cash prize to an employee for a competition run by you and open only to your employees.
What to report, what to pay
The prize money counts as earnings, so:
- add it to your employee's other earnings
- deduct and pay PAYE tax and Class 1 NICs using your usual payroll procedures
Work out the value to use
The value to use is the amount of the cash prize.
