Hi June, 

When you use the Business Expense pay element it's important to note that this pay element won't be subject to PAYE or NI. If you are happy with this, you can still process the Pay Run as far as the "Confirm" tab where you can then open the detailed report to view a breakdown of the pay and how it will impact the employee and employer, without having to "Complete the Pay Run". If you then need to make any further changes you can use the Back option to make any adjustments. 

If this has answered your question, please click More > Verify Answer.

Regards,

Dane
Sage UKI

HI Dane,

Thank you for your reply.  Although this give me the correct outcome for the employee - not tax or NI due, in the past I have paid bonuses for this business whereby the employer bears the cost of these and the employee just receives their net bonus payment.  So this option isn't really correct.  I am reluctant to contact HMRC for assistance, which is a feat in itself these days, nor do I want to go back to the employer and say my payroll programme can no longer handle this type of payment (after doing so for the past five years).  

HI Dane,

Thank you for your reply.  Although this give me the correct outcome for the employee - not tax or NI due, in the past I have paid bonuses for this business whereby the employer bears the cost of these and the employee just receives their net bonus payment.  So this option isn't really correct.  I am reluctant to contact HMRC for assistance, which is a feat in itself these days, nor do I want to go back to the employer and say my payroll programme can no longer handle this type of payment (after doing so for the past five years).