£500 one off bonus how you would want it?

Although if you were getting a bonus for long service (>=20 years) it would be tax free via option 2 or 3. (We provide that option for people at our company -they can either have vouchers or bring us in a receipt). I think you can have up to £50 per year of service so for 20 years you can have £1000
 
thanks for advice

will get clarification if option 3 or 2 will be taxed

I'm thinking amazon vouchers atm to be honest pretty universal and can be used on a wide range of items
 
I got option 1 this year and by the time it gets paid, Student Loans Company and Taxman take gigantic bites and leave me marginally better off than if I didn't get it at all.....damn you taxes and loans!
 
If your employer pays you a bonus, it's just part of your pay for the job - and you'll pay tax and National Insurance contributions on it through PAYE. Your employer includes it on your payslip with the rest of your pay.

Straight out of gov site.
Either way it's going to be taxed.

What I'd be asking if "I" was getting the full £500 net in each case.
 
There are quite a few "whiter than white" types in here aren't there?

Most of us would admit that we'd happily take money and not declare it to avoid some tax here and there.

A few of us act like we've never broken any kind of law and never would do :p
 
FoxEye said:
There are quite a few "whiter than white" types in here aren't there?

Most of us would admit that we'd happily take money and not declare it to avoid some tax here and there.

A few of us act like we've never broken any kind of law and never would do :p
Click to expand...

totally agree
 
Scubascorpion said:
If your employer pays you a bonus, it's just part of your pay for the job - and you'll pay tax and National Insurance contributions on it through PAYE. Your employer includes it on your payslip with the rest of your pay.

Straight out of gov site.
Either way it's going to be taxed.

What I'd be asking if "I" was getting the full £500 net in each case.
Click to expand...

remember it is a one off bonus not a quarterly one


basically I won't be getting reimbursed through my pay slip
there is 2 times a month that people get expenses paid in the company be it petrol, food, drink etc
it'll come out of that budget u see "expenses"
 
Wow, got to love the amount of people who don't have a clue what they are talking about.

As some have said, it is taxable.

Option 1, paid through wages, so tax deducted at source.

Options 2 & 3 - a Benefit In Kind, which your employer will pay NI on, and you will be liable to tax on. Your employer will declare the value on form P11D, which will be given to you at the end of the tax year. It will also be sent to HMRC.

When they receive the P11D, and the P14 declaring your earnings for the year they will perform a reconciliation, and issue you with any repayment you may be due, or issue a calculation showing how much you owe them, which will then be collected through the following years tax code, so during 2012-13.

The benefit in kind will not go into your tax code directly. HMRC will not know about it until the end of the year, and as a one off, it won;t be carried forward into the next year. Benefits In Kind (and other employment benefits) will only be included as such in the code for the year in which the benefit arises.

I personally would go for option 3, or possibly 2.
 
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