We were considering introducing a points system to monitor and motivate performance in a few of our departments, and it was suggested that rewards be given to the top 2-3 performers each quarter. The value for the rewards would have to come under £200 budget, but someone suggested that if the reward/incentive was not a cash sum through the payroll the tax/ni administration is too high a cost to the company.

Has anyone introduced such incentives? What were the tax/NI implications, and the approximate “unseen” admin costs? We wanted to give an “experience” day for the best performer.

Any advice / info would be greatly appreciated.
Nicola McManus