You can pay employees up to a maximum of £5K tax free if they make suggestions for improving revenue or profitability

Employers can make a tax free payment (under section 321 of ITEPA 2003) of up to £5,000 to encourage staff to make suggestions to improve the trade or profitability – the suggestions must have been implemented by the business and resulted in improved profitability.

Many businesses are not aware of this exemption and it is very much underutilised.

Details of this exemption and the conditions which must be met can be found on HMRC’s website here.