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salary enhancement

hi i am in line for getting a lump sum salary enhancement from my employer of several hundred pounds. How do i go about telling the tax office and will i get ni contributions deducted? And will my tax credits and housing benefit be affected?

Comments

  • real1314
    real1314 Posts: 4,432 Forumite
    Your employer should deal with the Tax and NI through PAYE.

    Tax Credits - dunno - won't be until the tax year 2012/13 though, but you will need to tell them

    Housing Benefit - yep, they will be affected - you need to tell them how much you get, same with any other benefits.
  • Johnhowell
    Johnhowell Posts: 692 Forumite
    Part of the Furniture 500 Posts
    edited 26 January 2012 at 8:25PM
    Emphasise to Tax Credit and Housing Benefit people that this is a one-off payment NOT a regular change to your circumstances.

    It could be that the bonus is within a range that will not affect your benefits - hopefully.

    Although, I suspect both will get confused and mess up your benefits and it will take forever to correct.

    Anyway, good luck.
    John
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