£500 one off bonus how you would want it?

Vonhelmet · 23 Dec 2010 at 22:43

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.

I'm not sure the CioT would look kindly on my committing tax fraud, and that would rather put the kibosh on my career so...

Kemik · 11 Jan 2011 at 22:48

Sorry for the bump but just in case the OP still needs help.

vonhelmet said:
1) Cash bonus taxed and NIC'd via PAYE

Yup.

2) Employer purchasing asset for you - taxed and NIC'd via PAYE on the value.

Income tax via P11D. No Class 1 (only 1A - employer contribution) as it's not a readily convertible asset.

3) Vouchers

PAYE & NIC Class 1 as it's a readily convertible asset unfortunately.

Vonhelmet · 11 Jan 2011 at 22:56

Kemik said:
Sorry for the bump but just in case the OP still needs help.

Yup.

Income tax via P11D. No Class 1 (only 1A - employer contribution) as it's not a readily convertible asset.

PAYE & NIC Class 1 as it's a readily convertible asset unfortunately.

Haha, glad you arrived to correct me. I've not worked in employment taxes for nearly a year so I'm well out of touch with all this shizzle. I even checked the HMRC guidance online to see whether vouchers were readily convertible but couldn't get a clear answer...

Anyway. The key point stands that they are all taxable one way or another - I just got the mechanics of it wrong!

Kemik · 11 Jan 2011 at 23:17

vonhelmet said:
Haha, glad you arrived to correct me. I've not worked in employment taxes for nearly a year so I'm well out of touch with all this shizzle. I even checked the HMRC guidance online to see whether vouchers were readily convertible but couldn't get a clear answer...

Anyway. The key point stands that they are all taxable one way or another - I just got the mechanics of it wrong!

I had my Individuals notes to hand. I get the exam result on the 18th. Not confident after having to check them!

I even work in People Services until the end of this month!

Simon · 11 Jan 2011 at 23:28

We often get vouchers as spot bonuses. Last year I got £500. I think the employer pays the NI and tax though.

csmager · 11 Jan 2011 at 23:48

Kemik said:
PAYE & NIC Class 1 as it's a readily convertible asset unfortunately.

Not meaning to be a total pedant but, as far as I was aware/was taught, "RCA" is a technical term that generally only referes to shares on the stock exchange (and, it seems, a few other specifics. Per this HMRC manual, it doesn't look like store vouchers don't come under that definition.

Vonhelmet · 12 Jan 2011 at 00:19

Simon said:
We often get vouchers as spot bonuses. Last year I got £500. I think the employer pays the NI and tax though.

Yeah, they could do, via a PSA.

MikeHunt79 · 12 Jan 2011 at 00:25

Option 2, then it can be written off as expenses if you're lucky...

Vonhelmet · 12 Jan 2011 at 08:56

MikeHunt79 said:
Option 2, then it can be written off as expenses if you're lucky...

Only if it's something he needs for the performance of his duties.

Or if he works as an MP.