Employer reclaiming taxed bonus from net salary

deskseeker

Hi - hope I've posted this in the right forum. I was lucky enough to receive a small bonus earlier this tax year, around 2.5 weeks salary. I paid tax and NI on this when I was paid it, via PAYE.

I have now left the employer and they are reclaiming the bonus - I knew when I was paid it that this could happen and have no problem with them reclaiming it. My issue is that they are deducting the total amount from my NET salary, so I am paying back ~70% more in cash terms than they paid me.

They have said that this is the only way HMRC allows them to do it and will give me some kind of document that might allow me to reclaim the tax from HMRC via self-assessment in January 2018, meanwhile I will basically have zero net income for this month which will cause me some cash flow problems.

Is this right? And is there any way around it, e.g. getting the tax back from HMRC sooner?

Thanks in advance for any help / advice.

DS

Reue

deskseeker wrote: »

Hi - hope I've posted this in the right forum. I was lucky enough to receive a small bonus earlier this tax year, around 2.5 weeks salary. I paid tax and NI on this when I was paid it, via PAYE.

I have now left the employer and they are reclaiming the bonus

Are bonuses not paid to cover previous work completed? Why can they reclaim it after it has been correctly paid?

Guest101

Employers can have their own policies on bonuses

getmore4less

deskseeker wrote: »

Hi - hope I've posted this in the right forum. I was lucky enough to receive a small bonus earlier this tax year, around 2.5 weeks salary. I paid tax and NI on this when I was paid it, via PAYE.

I have now left the employer and they are reclaiming the bonus - I knew when I was paid it that this could happen and have no problem with them reclaiming it. My issue is that they are deducting the total amount from my NET salary, so I am paying back ~70% more in cash terms than they paid me.

They have said that this is the only way HMRC allows them to do it and will give me some kind of document that might allow me to reclaim the tax from HMRC via self-assessment in January 2018, meanwhile I will basically have zero net income for this month which will cause me some cash flow problems.

Is this right? And is there any way around it, e.g. getting the tax back from HMRC sooner?

Thanks in advance for any help / advice.

DS

I suspect that is porkies ask them for the proof and which bit of tax legislation support this.

There should be no reason they can't deduct from gross.