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.
