James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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I recently started a new role where I got a sign-on bonus, obviously I paid income tax on this bonus.
As part of my contract, if I leave within a year, I have to pay back the full pre-tax amount.
Am I entitled to some kind of tax rebate in this situation? Otherwise I will lose out massively and then I will have to make up the difference out of my own pocket.
Before anyone suggests, I just sat on hold to HMRC for 20 minutes and gave up waiting.
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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P.s. I've also Googled it but can only find information about similar situations in the USA.
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
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the bonuse comes from the DWP any way mate but what they would do if you lost your job is take it as small amounts from you benafits to pay it back they would not expect you to pay it back in 1 lump unless you got like 50k pay out for some reason 
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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quote:
Originally posted by liam-corsa-1400
the bonuse comes from the DWP
Eh?
This is a sign-on bonus that my new company paid me. As in a golden handshake kinda thing.
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
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If you were sigeing on it will be from the departmen of working pensions mate (dwp)
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Cavey
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Registered: 11th Nov 02
Location: Derby
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James
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Registered: 1st Jun 02
Location: Surrey
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I don't mean a sign-on bonus as in signing-on to the dole. I mean a sign-on bonus as in they gave me a lump sum of cash to convince me to work for them.
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
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That means your employer would. Prob take it from your last pay best off phoneing h r mate cos hmrc wouldn't deal with it unless it came from us
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Toby
Premium Member
Registered: 29th Nov 05
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And these are the people in charge of tax......
I'm no.expert but anything you pay tax on and then have to pay back, you.would be able to reclaim the tax paid on.
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
User status: Offline
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That's not always the case this is were everyone gets it wrong
James have you been on the dole sins 6th april 2011 or have you been employed in that time?
If you have been employed how much have you earned check your p45 if you have earned more than 7475 from 6th april 11 to 5th april 12 then you will get nothing back unles you are on a tax code that shows BR
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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James, you'll only have to pay tax on your taxable pay, this bonus is included within that and in paying it back you should be eligible for a rebate on the tax paid as the tax you'll have paid this far will outweigh what you should have paid on your salary only. The difficulty I assume is whether the paying back of the bonus is accounted for on your p45/p60 or if you'll have to submit a self assessment form-I'd ask HR in the first instance or go in to your local tax office but I would assume it will be reflected on you final pay documents
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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And Liam you're completely missing the point of the question!!
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
User status: Offline
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quote:
Originally posted by LiVe LeE
And Liam you're completely missing the point of the question!!
i know what your saying now sorry people and your above quote is right but he will not have to fill in a self assesment for that he would just call the repayments help line and they will go through it with him should be straight forward but can be issues of what they want to know
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Paul_J
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Registered: 6th Jun 02
Location: London
User status: Offline
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quote:
Originally posted by liam-corsa-1400
That's not always the case this is were everyone gets it wrong
James have you been on the dole sins 6th april 2011 or have you been employed in that time?
If you have been employed how much have you earned check your p45 if you have earned more than 7475 from 6th april 11 to 5th april 12 then you will get nothing back unles you are on a tax code that shows BR
I'm literally in tears of laughter here
Everyone in my office just looked at me because I couldn't keep the laughter in.
[Edited on 22-02-2012 by Paul_J]
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
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end of the day mate its al income dosnt matter if you get it as hard ship or wether you pull it out of your ars the tax man will tax you on it and if you earn more than 7475 in a year dont expect to get anything back unless you are on a BR code eg alot of Stupid people think this is emergancey tax (there is no such thing)
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Paul_J
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Registered: 6th Jun 02
Location: London
User status: Offline
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Yes but Liam, I was laughing because of your misunderstanding of the situation.
1 ) not realising James was talking about a job golden handshake sign on bonus
2 ) thinking James was on the Dole
3 ) thinking James may have earnt less than £7475 in the last year
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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mate, what he is saying is he was paid a bonus £10k, he was taxed on that and lost a percentage of it (20% or 40%)
If he pays that £10k back to his employer then he will be entittled to claim that tax (20% or 40% of the £10k) back from the HMRC
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Dave
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Registered: 26th Feb 01
Location: Lancs
User status: Offline
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quote:
Originally posted by liam-corsa-1400
end of the day mate its al income dosnt matter if you get it as hard ship or wether you pull it out of your ars the tax man will tax you on it and if you earn more than 7475 in a year dont expect to get anything back unless you are on a BR code eg alot of Stupid people think this is emergancey tax (there is no such thing)
A lot of stupid people can't spell emergency.
Taken from HMRC website "Emergency Tax Code-810L".
James, you should get the tax you paid on the bonus repaid to you, how that comes about you are best checking with HMRC (good luck with that).
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James
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Registered: 1st Jun 02
Location: Surrey
User status: Offline
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Knowing my luck when I call up I'll get through to Liam 
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Liam-Wilko
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Registered: 6th Mar 08
Location: Sunderland, Tyne and Wear
User status: Offline
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Hope so lmfao and its actually a BR code its put down to emergency tax to simplify it for people there is no actual emergency tax code or in that case nearly half of the UK population would be emergency tax u can end up with a K tax code a BR. Witch means you will pay more tax . Phone us and you will be told the same its a busy time so expect to be on hold a little while
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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Can you explain why half of the UK would be on an 'emergency tax code', if they called it something else other than 'Emergency', that doesnt make any sense.
I know your trying to help but you talk a lot of shit considering you 'should' know.
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