Money Moral Dilemma: Should my employer adjust its rewards scheme so I don't lose out?

JayD

Just decline the award with a polite explanation as to why.

A brief account of how it would negatively affect you financially should suffice.

M4rkOne97One

They don't need to decline the award, so long as their annual salary at year end, is below the student loan repayment threshold, they can claim a repayment of the student loan deduction at the year end. If the op purely wants to avoid paying back their SL, then they might have to decline any future pay rises their employer might dish out. A pay rise might be significantly more than a single month's incentive award!

Jemma01

The only moral part in this question I see is whether to pay the student loan or continue to undervalue your work to avoid paying the loan and the taxes! I do find that very strange, and I know so many ppl who wouldn't accept a higher paying job because they'll end up having to pay their student loan or because they'll end up in the higher tax band, reducing the value of their working hours. Others would cap their business production for the same reason.

The desire to stay poor the rest of one's life is odd to me, those same ppl would be screeching at the government to increase taxes on the rich folks. I calculated and found that I pay effective tax of 48.17%, but I still take home a lot, it is a journey, salaries often don't jump unless you change jobs (which I always encourage), but for how long will you be avoiding higher pay to avoid taxes!?

Of couse to each his own situation and ambition, it always made me wonder.

superbigal

How is paying back money you owe being penalised ?

VacatedCape

OP here - there has been a bit of confusion here so thought I’d try clear up a few things. If I’ve missed anything, feel free to ask!

1. Maybe not your classic MMD, but think of this as a corporate money moral dilemma

2. Yes, of course this is niche, pretty much all MMD are niche

3. I currently earn over the repayment threshold, but still basic rate tax payer, therefore cannot get a refund at the end of the year

3.1 I will not be worse off for receiving the award, as a result of my student loan I will effectively pay 15% cash for the value of the voucher, for illustrative purposes, just shy of £30 cash for a £200 high street voucher. An individual without a student loan, but paying higher rate tax would pay £0 for the £200 voucher (costing the company more)

4. Think of the award as a quarterly/annual recognition, a small percentage of people will be awarded this per year.
5. the award is “advertised” as winners will receive £X amount in vouchers depending on the level of award. Those repaying student loans get X minus student loan repayment

6. I am not avoiding repaying my student loan, by winning the award I am repaying more, by adjusting payroll to factor in this repayment I would pay even more!

7. The real moral question is, should an award such as this factor in a student loan repayment so that all winners, regardless of individual circumstances, get the full advertised amount?

And finally, for a bit of fun…

8. For any Additional comments please share whether you received either free, or low cost further education in your comment.

sheramber

just think by repaying your student loan you are providing the government with money to lend to another student.

I did not go onto advanced education but my sons did.

One stayed at home so did not use student loan and the other repaid his student loan as soon as he was in employment, before he needed to.

Cantandrex

A little inconsiderate of the company you work for to pay rewards through payroll, thereby them possibly being taxable. It sounds like your company needs to rethink this and make it more user-friendly. If you earn a reward and know it will increase your tax liability, politely point this out and ask them to reward you in another way. You have earned the reward through your hard work and professionalism. If enough of you make this request they should, hopefully, rethink the scheme!