Expenses and benefits: cash sum payments to employees
Rules for private expenses
Private expenses are anything that does not count as a business expense, for example the cost of any travel that is not necessary for your employee to do their job.
If you cover the costs of private expenses, this counts as earnings. You’ll need to:
- add the amount to your employee’s other earnings
- deduct and pay Pay As You Earn (PAYE) tax and Class 1 National Insurance through payroll