Hi Sarah,

Thank you for using community hub.

What is preventing you from paying your tax free bonus?

If your bonus is not subject to PAYE, employers NIC and Employees NIC you can use Business Expense.

There is a list of the payment types available to you in the article link below.

Create and manage payments

If the format of the payment you need to use isn't available to you, you may need to use HMRC Basic Tools.

HMRC can advise you about this.

Download HMRC's Basic PAYE Tools

Kind regards,

Nigel

Sage UKI

Hi Nigel,

Employee Owned Businesses can pay bonuses that are not subject to PAYE, but are subject to NI and Student loan deductions. There is no payment type available to accommodate this. HMRC's basic tools aren't suitable for us as we are more than 10 employees. 

Having contacted the Help Desk again, they have found a workaround that allows this to be processed using 3 different types of payment so it seems we can process the bonus now. Hopefully all help staff will be made aware of this option for customers. 

Thanks

Sarah

Hi Nigel,

Employee Owned Businesses can pay bonuses that are not subject to PAYE, but are subject to NI and Student loan deductions. There is no payment type available to accommodate this. HMRC's basic tools aren't suitable for us as we are more than 10 employees. 

Having contacted the Help Desk again, they have found a workaround that allows this to be processed using 3 different types of payment so it seems we can process the bonus now. Hopefully all help staff will be made aware of this option for customers. 

Thanks

Sarah