Q: I just wanted to check if the higher duties allowance should be taxed as extra pay? We have a few people on this allowance for a certain period so, should this be taxed as a part of their ordinary pay or like a lump sum?

A: If paid as part of the pay period then it would be taxed just like wage/salary, if paid as a lump sum at a point in the future (for example when they finish the period of higher duties) then that would be an extra pay.