Staff suggestion scheme record

Tax rules permit employers to pay employees a tax and NI-free sum for suggestions to improve the busines. Keep a separate record of such payments to justify the tax and NI treatment should HMRC make enquiries.

Log the ideas

Where you operate a staff suggestion scheme you should make a record of all suggestions and any tax and NI-free reward paid. The record should also show the employee’s name and details of when their suggestion was implemented. Where the amount of reward is determined by its financial benefits to the business the record should also show how the reward was calculated. Use the Staff Suggestion Scheme Record for this.