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Posted Thu, 09 Feb 2023 07:27:17 GMT by chell66
Our workplace is considering Hardship fund for employees to access- is there any BIK or tax implications to this? I understand upto £10k interest-free loan can be provided to employees with no tax implications how about a hardship payment?
Posted Mon, 13 Feb 2023 15:07:29 GMT by HMRC Admin 18
Hi,

If you are making a cash payment that is not a loan, then this is treated as earnings and is subject to PAYE/NIC through payroll as normal. If you wish to discuss further please call the Employer Helpline on Employers: general enquiries to provide more detail.

Thank you.
Posted Fri, 10 Mar 2023 12:20:53 GMT by Sara Jeapes
Where we've processed these, we've grossed up the payment. Hardship payments will affect anybody in receipt of universal credit though, which was tricky.

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