Bonus from external company and how it can/will be taxed.

Renegadecrab

Morning all

I work in property and recently was asked to help another agency sell a flat.

For doing so I received an agreed commission but the developer was also offering an individual negotiator bonus to whoever sold the flat.

My commission will be treated as normal and taxed through PAYE but my accounts person asked what we do with the bonus. Should this be put into my salary for that month and therefore taxed as normal or can I ask for it to be transferred to me in its entirety and then I can review how to go about declaring that at the end of the financial year?

The only concern is being over taxed and then having to wait for any wrongful tax to come back my way as I could really use as much of it as possible right now.

If figures help then I can disclose those.

Thank you in advance

Lee

Pennywise

The bonus arose due to your job, so should be taxed/nid in the same way as your other earnings, i.e. through the payroll.

Dazed_and_confused

Providing you are on a cumulative tax code the tax should be correct.

If the bonus makes your income unusually high in April (assuming this is when it will be paid) you may pay some 40/41/45/46% tax but this will be adjusted each month if your annualised pay reduces to under the relevant threshold.