Overtime and how to pay this

[amalee]

Sorry, another question from me. A colleague has worked overtime this month. The boss has agreed to pay himadditional for babysitting fees as his other half works when he has do the overtime. The total for the babysitting this month is £192 + the overtime £360. So a bit a concerned about the tax here. Boss is willing to pay the babysitting from the petty cash or is there another way we can do this without paying too much tax?

Hope this makes sense.

[buildersmate]

There are ways of doing this without a tax liability but one of them isn't what the employer is proposing. The HMRC fact-sheet here explains more.
http://www.hmrc.gov.u...hildcarefactsheet.htm
It is the employer's look-out - technically it shouldn't be paying this out of petty cash since it is a taxable perk when done in this way. But the onus is on the employer to log it on the P11D as such, and to pay the additional NI and tax due calculated on the amount of £192.

[buildersmate]

Sorry - 'without any tax liability' is a bit misleading - you will see from the factsheet that it limited in value to a figure less than what your colleague is being funded.

[amalee]

Thanks, the info you sent was useful but somehow don't think that's going to work iyswim. I think I will leave it at the boss's discretion.