Ndubuisi 'Andy' Egwim explains how doctors can give staff bonuses without tax surprises. Gifts over £50 count as earnings and need payroll processing, but employers can gross up bonuses to cover the tax so employees get the full amount they expected.
In this video, I'm going to walk you through seven completely legal ways doctors and healthcare professionals quietly overpay tax every single year and how to stop doing that efficiently. Staff gifts and bonuses Number four, you need to do it properly. If you want to give staff something bigger than 50 pounds, you absolutely can. But once a gift exceeds 50 pounds or reward or rewards performance, it can be a performance bonus. HMRC is going to treat it as earnings. If you do that, that means it should go through payroll. You don't want that. Here's a smart move. Many business owners don't realize you can actually gross up the bonus. So put it all together. So if you want your staff member to receive 100 pounds in their pocket, you can pay the tax on their behalf so they get £100. But you are the hero. HMRC is satisfied because you grossed it up. No nasty surprises, no angry January pay slips. Okay.
