Referral Bonuses - Taxable?

[scirocco265]

At work we operate a 'bonus' scheme - for customers and employees alike - if they refer another individual to purchase goods in which the Company trades. Simple question really: is this a benefit-in-kind for the employee and therefore subject to PAYE tax and NI, or should it just be declared on the annual PSA return?

[Eric Mc]

Benefits in Kind are goods or services received from an employer for free or at less than market cost.

Any straight cash received through your employment as earnings will normally be subject to both PAYE and/or NIC.

Edited by Eric Mc on Thursday 24th June 14:32