Expenses and benefits: Christmas bonuses

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What to report and pay

You may have to report any Christmas bonuses to HM Revenue and Customs (HMRC), and deduct and pay tax and National Insurance on them.

Cash bonus

Any cash you give to employees as a Christmas bonus counts as earnings, so you’ll need to:

  • add the value to your employee’s other earnings
  • deduct and pay Pay As You Earn (PAYE) tax and Class 1 National Insurance through payroll

Goods

If you give goods as Christmas gifts, and they can’t be counted as trivial benefits, you must: