We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Claw back of bonus in PAYE before last day
energy1x
Posts: 77 Forumite
My employer paid me and everyone in my department a lump sum bonus of £3,000 earlier this year in June.
I resigned from my role recently and as part of the agreement of the bonus, anyone who leaves before the end of the year has to pay back the bonus amount in full. (Claw back).
However, how is my employer able to do this? I obviously paid tax on the original bonus amount £3k in June in addition to my basic pre tax gross salary of £4000 so my gross total in June was £7000 of which £3000 was the bonus, prior to tax.
I've told my employer if they can to just adjust the amount gross they pay me in my final payslip so this would be £1000 only, as my usual basic salary is £4000 a month, so minus the £3000 the company then receives its money back by paying me less.
Is this legal and is my employer able to do this? They have been incredibly reluctant to do it this way but this is the only way else I'll pay tax twice, on receiving the bonus and then giving it back?! :mad:
I resigned from my role recently and as part of the agreement of the bonus, anyone who leaves before the end of the year has to pay back the bonus amount in full. (Claw back).
However, how is my employer able to do this? I obviously paid tax on the original bonus amount £3k in June in addition to my basic pre tax gross salary of £4000 so my gross total in June was £7000 of which £3000 was the bonus, prior to tax.
I've told my employer if they can to just adjust the amount gross they pay me in my final payslip so this would be £1000 only, as my usual basic salary is £4000 a month, so minus the £3000 the company then receives its money back by paying me less.
Is this legal and is my employer able to do this? They have been incredibly reluctant to do it this way but this is the only way else I'll pay tax twice, on receiving the bonus and then giving it back?! :mad:
0
Comments
-
You'd get the tax refund later at the end of the tax year anyway if they don't.I Would Rather Climb A Mountain Than Crawl Into A Hole
MSE Florida wedding .....no problem0 -
Thanks for your reply.
It looks and sounds like they're going to grab it from me after tax (net) pay. How will I claim back the difference? Will the tax man notice and pay me back or how will this work.0 -
They should adjust the gross pay by the gross amount of the bonus.0
-
They should adjust the gross pay by the gross amount of the bonus.
This is what I asked for and they seemingly agreed however they have now changed their mind and I don't see how or when I'll be able to work out the tax I am owed back and then who will pay it back?0 -
This is what I asked for and they seemingly agreed however they have now changed their mind and I don't see how or when I'll be able to work out the tax I am owed back and then who will pay it back?
You might want to point out to them that the only way that they can get their employer's national insurance back is to adjust the gross pay.0 -
Were there pension contributions taken into account?Don’t be a can’t, be a can.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards