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HMRC internal manual

Employment Income Manual

HM Revenue & Customs
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Incentive award schemes: valuation of non- cash awards: who does what

The basis of valuation is set out at EIM11205. The party responsible for valuation differs according to the circumstances of the arrangement.

The Incentive Award Unit

Where a taxed award scheme (TAS) is entered into, the Incentive Award Unit will agree the amounts chargeable to tax. See EIM11235 for guidance ontaxed award schemes.

Local tax office

Where a PAYE settlement agreement (PSA) is entered into, the employer’s tax office will agree with the employer the amounts chargeable to tax. See EIM11270 for guidance on PSAs.


Where a direct employer enters details of non-cash awards not dealt with by a TAS or a PSA on forms P9D (for 2015/16 and earlier) or forms P11D, the employer has to value the awards; the valuations may be checked later in any normal compliance reviews.

Third party

A third party providing awards not covered by a TAS will have to value awards on any return made under Section 15 TMA 1970 (see EIM11215 about such returns). And a third party providing awards not covered by a TAS will have to value the awards when providing the employees with written details.

See Chapter 4 of “Self Assessment What it will mean for employers” (SAT3 (1995)) about the obligation of third parties to automatically provide such information to employees.