Expenses and benefits: examination grants
As an employer awarding examination grants to your employees, you have certain tax, National Insurance and reporting obligations.
An examination grant is classed as a one-off cash award for exam success.
What to report and pay
The examination grant counts as earnings, so you’ll need to:
- add the payment to your employee’s other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll