A school has asked our company if we could take a child for work experience for two weeks and we accepted. I would like to give this child some money (£50) for the work they have done, to say thank you. How do I record this in my accounts? Is it better to give a gift card or pay directly into the child's account? 

Arthur Weller replies: 

HMRC’s Employment Income Manual at EIM10500 states: ‘There is no charge to tax on payments made to young people taking part in government or other work experience schemes if they hold the status of trainee and not employee.’ Perhaps the best thing might be to: (a) Pay the £50 into the individual's bank account; (b) Record it in your accounts under ‘training’ or ‘staff welfare’ as a business expense; and (c) Retain a brief note of the date, recipient and reason.