Bonus/Non-consolidated COL payment

citygirl89

I work in the public sector and will be receiving a £1500 cost of living non consolidated payment. We’ve been given the option of having it paid in one go or over three instalments and I can’t work out if one option is better than the other or if it ultimately doesn’t make much difference. Think it’s about national insurance as tax will even itself out. 

I earn £55k. Another potential complication - work have messed up my maternity leave pay so I’m expecting some back pay (could be up to a whole months salary - still trying to work this out) and there’s a chance this could be paid in the same month as the above payment. 

Appreciate any advice! Thank you.

molerat

As you are a 2% NI payer anyway it won't make any difference whether it is paid in one go or split.

citygirl89

Great thanks - that’s easy then! 

chrisbur

You mention maternity pay.  Are you actually on maternity leave at the moment if you are what is your likely gross pay for the months the this bonus is to be paid.
NI is calculated on actual payments made on the payday which might be different to your normal earnings if on mat leave.

citygirl89

I’m back at work now and have already had one month of full pay. There was a mix up and I didn’t get paid for 6 weeks of leave that I should have, so that will come as back pay at some point. So it may happen that I get the back pay and the payment in the same pay packet 

chrisbur

citygirl89 said:

I’m back at work now and have already had one month of full pay. There was a mix up and I didn’t get paid for 6 weeks of leave that I should have, so that will come as back pay at some point. So it may happen that I get the back pay and the payment in the same pay packet 

In which case makes no difference how it is paid.