PSA expenses

PSA expenses

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Our firm employs a large team of sales reps working throughout England and Wales. We provide them with incentives such as bottles of alcohol and gift vouchers on a monthly basis. Should these incentives be included on our PSA return?

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By tonycourt
21st Jun 2012 16:47

What do you mean by employ?

To avoid giving you duff information can you say whether the sales reps are employees of your firm or are self-employed and operating on a freelance basis?

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By claire_silvester
21st Jun 2012 16:51

Sorry, the sales reps are employees of the firm. Thanks

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Replying to DJKL:
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By tonycourt
21st Jun 2012 17:03

It's a matter of choice

I think it would be right to include the gifts in a PSA  otherwise the reps will feel a little hard done by when they get a tax bill for them. However whether you do this, or opt for declaring them on a P11D is up to your company. Although not usually done you could  gross up the value of the gifts and add them to the employees pay and each month. This would avoid having to bother with a PSA. Employees NI wouldn't be due on the notional payment, but employer's would.  

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By Paula Sparrow
21st Jun 2012 17:15

Beware gift vouchers

Most PSAs can be applied for after the event.  However, you can only apply for a PSA before making payments of gift vouchers, otherwise they have to be taxed and NIC'd through payroll

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By claire_silvester
25th Jun 2012 11:21

We have been submitting PSAs

We have been submitting PSAs for a few years now, this is the first time we have given wine and gift vouchers as incentives.

 

Thanks for your help.

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