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Can I make a tax efficient bonus payment to my employee?

Question:

M company would like to make a bonus payment to a member of staff and would like to minimise the tax burden if possible. What's the best way to make the payment? 

Arthur Weller replies:  

There is not much that you can do to minimise the tax burden when making a bonus payment to an employee. This payment will trigger National Insurance (NI) for the company, and tax and NI for the employee. 

M company would like to make a bonus payment to a member of staff and would like to minimise the tax burden if possible. What's the best way to make the payment? 

Arthur Weller replies:  

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This question was first printed in Business Tax Insider in March 2023.