Is our boss allowed to do this?

[Jones9876]

We have recently found out that our boss who has recently come into money has given a significant amout of money to a few other employees as a 'gift'. We are naturally pissed off! The money was paid straight into their bank accounts. He has denied giving any money at all.

Are we BU to feel so annoyed about it (particularly as those who didn't get it work a hell of a lot harder than some of those who got the money?) 😩

If your boss won the lottery would you believe you were entitled to part of it?

Yabvu. Goodness me 🤣

If it was a gift it would be subject to the 7 year inheritance tax rule, if it was work related it would be subject to tax and NI

Yes it may seem that way but the money came from her actually selling the business although she still runs it. Given how hard we work it seems rubbish not to be given a slice of the pie!

It is that way. Its her money. She can give it to whom she likes. You get paid for your job.

If she is denying it how do you know it’s true?

min any case bonuses aren’t universal even if it is work related. That’s life - not everyone gets a bonus.

but as other have said if it is a personal gift then it’s none of your businesses.

The payments probably should’ve been taxed as a bonus on the recipient, so it sounds a bit dodgy, but it is entirely legal and moral.

It’s all well and good saying it’s their personal money and they can do what they like with it, but I know I’d be uncomfortable in this situation. Not because I would feel entitled to some cash myself, but because I’d wonder how objective a manager could be when it comes to pay rises, promotions and so on in a situation where they are such strong friends with some staff that they give them cash gifts.

This would be an issue in a large company with well-developed policies on conflicts of interest and for good reason.

Bloody hell. That makes your unrealistic demand even worse. You think you are entitled to a share of the sale of her business that at no point you put in any finance or took any financial risk. Unbelievable! Your sense of entitlement may be precisely why you weren't amongst those she regarded as friends who she made gifts to!

@MimosaSunrise I agree
So many cans of worms just waiting to open

A gift from her personal money is not taxable income. Do you pay tax on your birthday money?

This. Sounds like a tax dodge to me

Funnily enough my boss doesn’t give me birthday money.

You've had your slice of the pie. It's called a salary.

Your boss started the company and has now sold it. She earned that money. It is her personal money. If she has chosen to give some to friends as a gift then that's up to her. Doesn't matter if those friends work for her or not.

The only problem here is one of them has opened their mouth and told people, so the green eyed monster has come out in you lot. You've no right to demand a gift from someone. The money isnt yours.

They are your employer not your parents, it's not like when parents don't treat their kids the same

It would be unusual to be given money unless you had shares in the company.

No I meant any birthday money you might receive from a parent or partner or friend because that is what this is a personal gift

This

Did the boss ask for bank details first or did she use details she had for business reasons to carry out personal business? If so then I think breach of DP/IG.

Yes but that’s not the same as an employer gifting money to an employee is it? Otherwise any employer could “gift” money to their employees and it not be taxed. HMRC are not going to say “oh she said it was a gift, nothing we can do here” are they? Where you have family companies it gets a little more difficult but that doesn’t sound the case here.

It's not your pie.

Hmm

The employer is the company that she sold. The giver of the gift is a person. The money was not company money. The money was her personal are completely different entities. I hope that has simplified the matter so that you understand there is no tax issue at all.

Seems like the boss wanted to give a decent reward to the people they felt had made a valuable contribution. It's a bit tough, but their choice.

The employer is the company that she sold. The giver of the gift is a person. The money was not company money. The money was her personal are completely different entities. I hope that has simplified the matter so that you understand there is no tax issue at all.