EIM11225 | Incentive award schemes: valuation of non- cash awards: who does what

The basis of valuation is set out at EIM11205. The party responsible for valuation differs according to the circumstances of the arrangement.

The Incentive Award Unit

Where a taxed award scheme (TAS) is entered into, the Incentive Award Unit will agree the amounts chargeable to tax. See EIM11235 for guidance ontaxed award schemes.

PAYE Settlement Agreement

Where a PAYE settlement agreement (PSA) is entered into, HMRC will agree with the employer the amounts chargeable to tax. See EIM11270 for guidance on PSAs.

Employer

Where a direct employer enters details of non-cash awards not dealt with by a TAS or a PSA on forms P9D (for 2015/16 and earlier) or forms P11D, the employer has to value the awards; the valuations may be checked later in any normal compliance reviews.

Third party

A third party providing awards not covered by a TAS will have to value awards on any return made under Section 15 TMA 1970 (see EIM11215 about such returns) and when providing the employees with written details.