Annual Bonus

Mr_Green_Genes

I am taking on a case for a friend. Amazingly the Gestapo seem to have calculated the 'basic' assessment correctly ( yes, they can now work out 20% of a PAYE taxpayers salary, amazing though that may sound) but there is a problem of an annual bonus.

As a general rule, I know that policy is to take the annual bonus, divide by 52 and add that to the weekly assessment. So far, so good. However, what are the rules governing a bonus which was received 6 months before the marriage broke up? The Gestapo have made the calculation as above, but I wonder whether they are entitled to take it into account at all. I would appreciate it if someone with expert knowledge (hello Kelloggs, long time no speak) could aim me in the general direction of the legislation (well Statutory Instrument anyway) which deals with this.

PS Hello to the regulars. I see it's been quite lively on here during my absence.

Mr GG

marksoton

Hello Mr GG.

Hmm, interesting one that, couple more months and the poor !!!!!! would not have had it showing on his payslips !

Common sense would say they would disregard it.

Which probably means they will include it.

kelloggs36

Yes as the NRP received the bonus and it is pro-ratered (if that is how you spell it lol). If next year the bonus is much less, NRP can apply for a reassessment.

kelloggs36

am looking up regs - is it the calculation of income I guess? Not sure it says it in there but will do so in the CSA guide - which I don't have access to at the mo!

Mr_Green_Genes

kelloggs36 wrote: »

am looking up regs - is it the calculation of income I guess? Not sure it says it in there but will do so in the CSA guide - which I don't have access to at the mo!

I would imagine it is the calculation of income - you see, I knew you'd know!!! If you get the chance to look it up for me I'd be very grateful because I need to know the technicalities of the regulations, rather than (so to speak) the morals.

It may be a grey area of course, in which case I'd be inclined to argue that the money paid as a lump sum before the relationship ended should not be included because it it has already been used for the benefit of the family as a whole - a family holiday which they all went on. Under those circumstances, it seems very harsh effectively to count it again. Still, no-one said the rules made any sense.

Re your previous post, I can accept that a bonus earned after the split might be included, and certainly it will need to be reassessed this year as I doubt there will be many bonuses flying around under the circumstances. However, in this circumstance it seems wrong somehow.

Thanks for looking.

PS I think it's pro-rated :cool:

Mr_Green_Genes

marksoton wrote: »

Hello Mr GG.

Hmm, interesting one that, couple more months and the poor !!!!!! would not have had it showing on his payslips !

Common sense would say they would disregard it.

Which probably means they will include it.

Hi Mark. They pro-rated it as in Kellogg's post. I'm wondering about an appeal but I need to understand the exact regulation if one exists. If not, it could be "try my luck" time.

kelloggs36

I wrote pro-rated but it looked wrong - rated as in to rate, hence I tried the other way but that didn't look right either!!!!

Loopy_Girl

Mr_Green_Genes wrote: »

If not, it could be "try my luck" time.

God I love it when a man says that to me!!!!!!!:rotfl::rotfl::rotfl:

Hey Mr GG:hello:

Mr_Green_Genes

Loopy_Girl wrote: »

God I love it when a man says that to me!!!!!!!:rotfl::rotfl::rotfl:

Hey Mr GG:hello:

Hehehe :D

Hiya LG!! Still loopy I see

Mr_Green_Genes

kelloggs36 wrote: »

I wrote pro-rated but it looked wrong - rated as in to rate, hence I tried the other way but that didn't look right either!!!!

It doesn't look right to me to be honest but the statisticians at my work always write it like that and who could argue with a statistician.

Well, I suppose 23% of the population might do that, in the proportion of 67% over 42 and ... sorry, got carried away there for a moment

marksoton

Seems a bit unfair to me. If an NRP supply's April and May payslips it won't be included for obvious reasons but if it's March and April it is.

If it is done on a pro rata basis surely that should cease at the end of the tax year ?