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