If your employee is injured at work and you pay them compensation, you don’t have to report these payments or pay tax or National Insurance as long as certain conditions apply.
You won’t have to report to HM Revenue & Customs or pay tax and National Insurance if:
The following guides contain more detailed information:
employment income: sick pay and injury payments - injury payments
Class 1 National Insurance: earnings of employees and office holders - damages
Don’t include personal or financial information like your National Insurance number or credit card details.