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HMRC internal manual

Employment Income Manual

Incentive award schemes: action by the provider of awards under a taxed award scheme

When a provider of incentive awards has signed a taxed award scheme contract, the contract obliges him to:

  • make a return of awards to the tax office dealing with his PAYE
  • account for tax at either basic or higher rate on the grossed up value of the awards
  • give each employee who gets an award under a higher rate scheme a certificate showing the grossed up value and the tax accounted for. Where a scheme is for basic rate, certificates need only be issued to employees who require them.