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Tax and Paying People – allowances, benefits, lump sums

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Sometimes you may pay your employees sums in addition to their normal wages, such as:

  • allowances
  • benefits
  • holiday pay
  • lump sum payments

Some are tax free, but most are taxable. For some, the employer pays tax, while for others the employer deducts PAYE on the employee's behalf.

You may also provide various non-cash benefits to your employees as part of their total employment package. Even where the benefits are not in cash, they still have a value which is taxable.

The tax treatment depends on what the payments are for and the circumstances that apply.

It can be confusing working out the tax treatment of these payments for your business.

 

DOWNLOAD THE GUIDE TO TAX AND PAYING PEOPLE ALLOWANCES, BENEFITS or LUMP-SUMS

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Eric Mahoney, Chairman, Maritime Museum Foundation

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It has been a pleasure working with Errol Burn and the team at Lynch and Associates, their insight, intelligence and in-depth knowledge of the social impact sector has allowed the Sir John Kirwan Foundation to flourish and grow.  Fully supporting the Foundation in all of its financial needs, Lynch and Associates have never failed to deliver, always providing calm, thoughtful advice together with encouraging us to consider every aspect, to ensure maximum benefit.

Nikki Flexman, Head of Growth, Sir John Kirwan Foundation

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Darryn Smith, Director, Multicolour Screen Printers Limited

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John and Shelley Bishop 

North Shore Riding for the Disabled is one of 50 RDA Groups across the country. Our previous auditor resigned suddenly and we were left searching for a new firm to handle our work. Errol Burn at Lynch & Associates stepped straight into the situation and we could not be more delighted with the way in which our subsequent audit was managed. Timely, insightful and always available, we could not be more pleased and look forward to a long relationship – indeed, we were more than happy to recommend them to our National Body when their audit was taken to the market.

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