Real-life MMD: I got £400 for finding someone a job, should I give them half?

moneyballs2

Take her out for dinner, a treat. But at the end of the day, it's a finder's fee.

It's not like Quidco cashback!

thinkingahead_2

One thing to consider. Would the payment by the employer be subject to tax? In whichcase you won’t have the whole £400 to split and the person you gave the moneyto would also have to declare it as income.

I'm sure the employer wouldn't want to split the payment ar source, therefore it is only rihgt you keep the net income from the payment.

pinkystan

No! My employer runs a similar scheme, whereby if someone refers a friend and they pass their 6 month probation period, the referrer gets £1,000. It's nothing to do with the friend!

Idiophreak

I think it's really out of line for this "friend" to assume they're getting half without discussing it first. We get $4k for referrals at our place and you'd better believe I'd be keeping it all. I'd probably buy the person a drink or two with the money to welcome them aboard, but that's it.

nifferwilko

thinkingahead wrote: »

One thing to consider. Would the payment by the employer be subject to tax? In whichcase you won’t have the whole £400 to split and the person you gave the moneyto would also have to declare it as income.

I'm sure the employer wouldn't want to split the payment ar source, therefore it is only rihgt you keep the net income from the payment.

Thinkingahead got in before me. Usually, as a rough guide, you should expect to see around 2/3 of any bonus payments, after tax and NI. So £400 suddenly becomes £267 and if split, each would receive £133 not £200.

If you agreed to split beforehand, I echo what everyone else has said and you would have to split. If not, it depends what your friend is like, and bearing in mind you have to work at the same place, whether not splitting will cause issues. One way around is to work out how much of the bonus you actually get after tax & NI is deducted, half it and subtract £50, explaining to your friend that you only got this much of the bonus after tax/NI/pension etc.etc. So you keep slightly more than half, but your friend is appeased.

Personally, I would have agreed beforehand what to do with it and made it clear from the outset.

Jilly_Dew_Drop

If this £400 is to be paid with your salary, then it will have tax at 20% and NI at 12% deducted, therefore you will only receive £272.

I think, take them out for a meal to celebrate there new job and leave it at that.

Willowcat_3

Think of it being the other way around - how would you expect a friend to act? If it were me I'd be happy to get the job and wouldn't expect a share of the bonus. Although I would secretly hope my friend takes me out for a meal or drink to celebrate and pay for some, if not all, with their bonus as a thank you. Its not the money, its the action thats important.

dktreesea

Willowcat wrote: »

Think of it being the other way around - how would you expect a friend to act? If it were me I'd be happy to get the job and wouldn't expect a share of the bonus. Although I would secretly hope my friend takes me out for a meal or drink to celebrate and pay for some, if not all, with their bonus as a thank you. Its not the money, its the action thats important.

If that were me, as in I'm the one getting the job, I'd be thinking if not for me you wouldn't be getting the bonus.

Since all of the tax burden falls to the person receiving the bonus, if you do decide to split it, just do as the other posters have suggested and split the after tax and NI amount.

If you are good friends, how about going to Barcelona for the weekend? Or take the Eurostar to Paris if you live handy to it? Dublin's a prettty good place for a weekend. Bergen can be wet, but it is a lovely place. "£270 should be enough to cover airfares and a hotel, I would have thought, if you plan it in advance and travel light.

minislim

referral bouses are for the referee only. thats why the money is paid to you.
if you agreed with your friend before hand to give them some then do so. if not dont give them anything. they are £300 per month better off.

if they dont like it then say that they can have half of your bonus. but you can have half of the money they are better off each month (£150)

warehouse

Simple. No you don't split. What in God's name is she thinking asking in the first place the tight *****.