take the cash? you mean option 1?
£500 one off bonus how you would want it?
- Thread starter psd99
- Start date
take the cash? you mean option 1?
yes, normally they would be declared on a P11D and worked into next years tax code, he could just put them on a wageslip and tax immediately too I think
oh dear bit of a sensitive one I can hardly say to my boss
"so are you going to declare option 2 or 3" lol
tricky
Deleted member 66701
D
Deleted member 66701
So take option one and don't worry about.
Remember though, it's your responsibilty, not your employers, to ensure your tax/ni contributions are correct.
Soldato
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- 2 Jun 2004
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Yes option 1 is the best one, I would expect your employer will declare the bonus in his PAYE submission anyway and you will be taxed regardless of how he gives it to you.
If he is doing it under the counter so to speak then giving you £500 in cash is as simple as the other options.
He may have a discount on Amazon vouchers, or can claim the VAT back on any goods he buys in lieu of the cash which is why he has given you those options.
But he wouldn't be paying the tax, his employer would.
his tax code would be readjusted to account for the benefit in kind.
But he wouldn't be paying the tax, his employer would.
no, he would unless his employer offered to cover it for him, his employer would have to pay employer NI, he would pay tax and NI
Well yes but then it would be £500 net of tax and the gross amount would be higher.
Having them re-imburse you for something will be the best way i'd say
Man of Honour
I’d take 1 or 3 if it wasn’t taxed.
Feign ignorance. "Oh, would the Amazon vouchers be tax free then? That sounds like the best option!" Your boss will clarify.
Not really as he would get 500 in vouchers/reimbursement and lose the tax amount in cash
Soldato
option 2 or 3 in the jan sales = bigger tv bang for buck = WIN
Capital bond vouchers are pretty good, probably as close to cash as you're going to get.
Only worth taking if gets you off tax though.
I always thought vouchers weren't taxed as thats why we give them to staff as an incentive instead of cash, obviously not.
Only worth taking if gets you off tax though.
I always thought vouchers weren't taxed as thats why we give them to staff as an incentive instead of cash, obviously not.
Caporegime
Pretty sure the situation is as follows...
1) Cash bonus taxed and NIC'd via PAYE
2) Employer purchasing asset for you - taxed and NIC'd via PAYE on the value.
3) Vouchers - not subject to PAYE or employer's NIC as they're not a readily convertible asset, so you'd probably have to pay tax on them yourself. This is a pain in the arse, as you'll have to declare the benefit yourself, but if you're happy to commit tax fraud then you can get away with it.
Someone find Kemik and he can tell me where I'm wrong.
</tax adviser>
1) Cash bonus taxed and NIC'd via PAYE
2) Employer purchasing asset for you - taxed and NIC'd via PAYE on the value.
3) Vouchers - not subject to PAYE or employer's NIC as they're not a readily convertible asset, so you'd probably have to pay tax on them yourself. This is a pain in the arse, as you'll have to declare the benefit yourself, but if you're happy to commit tax fraud then you can get away with it.
Someone find Kemik and he can tell me where I'm wrong.
</tax adviser>
Soldato
3 it is then 