Furlough Workers

melissasteele659

I was furloughed in March 2020 and my work brought me back to work in June but still paying me furlough money, and topping up the extra 20%. I work in the housing market and often doing viewings to get bonuses. I received my 3 month bonus but they have taxed me on the bonus amount. In normal circumstances I know it should be taxed but as I am technically still furloughed is my employer still allowed to tax me on any bonuses? Any help would be helpful... 

unholyangel

Do you mean you're flexibly furloughed? You can't do any work for your employer while furloughed. Your employer can furlough you part time, but they need to pay 100% of your wages for the hours worked - they can't claim furlough for it. 

Furlough is taxable pay - it's still wages. So whether you should have paid tax on your bonus would depend on what your total income was, including money received while furloughed

melissasteele659

When I was furloughed, I was due a bonus amount. Is my employer allowed to tax the bonus amount or should it paid in full? I normally earn £18.000 per annum but was on furlough for a few months so not sure if it’s over the tax freshold. 

Jeremy535897

The bonus, along with actual pay and furlough pay, is taxable. Your employer will have deducted the tax and NIC due according to your notice of coding. Whether you have paid the correct amount of tax depends on the accuracy of the code used.

Grumpy_chap

If, by the end of the tax year (5th April), your tax paid is incorrect because furlough had changed your pay from normal levels, it is possible to claim back any overpaid tax.  For an employee with only one source of income, this is normally an easy process once you have received your P60.

mattyprice4004

So you want the Government to pay most of your wages, AND to not pay tax on the bonuses too?