Expenses and benefits: bank charges
As an employer, reimbursing or paying your employees鈥� bank charges counts as earnings.
You will need to:
- add the payments to your employees鈥� other earnings
- deduct and pay PAYE tax and Class 1 National Insurance through payroll
What鈥檚 exempt
If your employees鈥� bank charges are your fault (eg because you paid their wages late) and you pay or reimburse them, this doesn鈥檛 count as earnings.
You won鈥檛 need to report anything to HM Revenue and Customs (HMRC) or pay any tax or National Insurance.
Technical guidance
The following guides contain more detailed information: