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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

People complaining about their 'bonus'

275 replies

extramoney · 26/06/2023 06:09

Reading a thread about the NHS bonus and everyone unhappy that it's not as much as they expected because of deductions

Made me think that actually people are a bit entitled. we all get taxed on bonus, we should just be grateful we've had some extra.

OP posts:
mrsneate · 26/06/2023 09:13

YABU for calling it a bonus.

It's back dated pay. Not a bonus.

Have you ever worked a day in the nhs.

My last 13 hour shift I didn't get a break. We were 10 nurses short that night (itu setting so can't just wander off and leave patients!)

So if I want to moan about my deductions. I will.

justteanbiscuits · 26/06/2023 09:14

YoucancallmeKAREN · 26/06/2023 08:55

Aren't some people extremely lucky they get a bonus and not just a crap wage for doing their job.

No, because what happens next year? Staff want a pay rise. A proper, cost of living pay rise.

groupery · 26/06/2023 09:17

@OhmygodDont that's really unusual because most people tax affairs are pretty private & between the person & HMRC. Payroll would just know the payroll code.

CornishAdventures · 26/06/2023 09:21

If you’re in the lower tax bracket you should pay 20% tax on it and NI. Pension depending on your scheme

However as it’s being paid at the beginning of the tax year the system thinks this is your monthly pay and will usually assume you receive 12 times that amount in a year from now on and tax accordingly. It should adjust your tax the following month

Iwishicouldflyhigh · 26/06/2023 09:22

honeyandfizz · 26/06/2023 06:28

It is shit to be fair and most people understand the tax system perfectly well. I have been awarded around 2400 and will have around 1k in deductions after NI, tax and pension deductions, it really is not a bonus but back pay from last year so YABU.

But if it is backpay, then this should attract tax, surely?

Blanketpolicy · 26/06/2023 09:27

I can completely understand if you do not usually get an annual bonus, you will expect an increase in tax etc but you don't realise that all your bonus will be liable for tax, NI and student loans so it might be quite a bit more than expected and a bit of a disappointment.

I get a significant (to me!) bonus every year as part of my salary package (instead of it being included in my salary) and I still moan about the deductions! Who doesn't!?!

NoraBattysCurlers · 26/06/2023 09:32

extramoney · 26/06/2023 06:09

Reading a thread about the NHS bonus and everyone unhappy that it's not as much as they expected because of deductions

Made me think that actually people are a bit entitled. we all get taxed on bonus, we should just be grateful we've had some extra.

NHS should be ever so grateful that they have received that little bit extra.

What does it matter that inflation was running as high as 9.6% in the previous year.Surely, NHS staff are not as entitled as to expect to be able to feed themselves? Never mind house, clothe and stay warm.

The cheek of them!

RafaistheKingofClay · 26/06/2023 09:35

That’s what the staff food banks are for though. Hmm

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

TheSeaDoesntKnowMyName · 26/06/2023 09:38

groupery · 26/06/2023 07:27

Thing is it’s always horrible being told you’re getting a bonus of say 2k and then realising or remembering that actually you are not at all. I think a bonus under X amount should either be tax free once a year or employers should have to talk about it at actual take home value.

How can bonuses be tax free?

Employers can't tell you the take home prior because everyone has different income due to jobs & additional income.

add to that most bonus's will be 'non contractual' - meaning, they may pay you a bonus, which may be in a % band

TheSeaDoesntKnowMyName · 26/06/2023 09:40

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

Agree - I've gone up 5% in nearly 4 years in total

RosesAndHellebores · 26/06/2023 09:41

The NHS aren't grateful for the bonus. Yes I get they feel overworked and underpaid. However, presumably that gives the public the right to be ungrateful for shit care, long waits and shit systems then.

The public should have been kicking up a stink decades ago rather than sucking the grateful egg, because it's free. It isn't we all pay tax and ni towards it. That is all too frequently conveniently forgotten.

Any earnings I receive, I have to.pay tax and ni. There shouldn't be an exception for the NHS. Oh wait, there could be if it was possible to contract out of NHS services and fund an alternative privately, which I would do in a heartbeat.

3BSHKATS · 26/06/2023 09:42

Honestly shows how genuinely thick most people are. Unless it stated a tax free bonus, its going to be taxed.

hettiethehare · 26/06/2023 09:44

CornishAdventures · 26/06/2023 09:21

If you’re in the lower tax bracket you should pay 20% tax on it and NI. Pension depending on your scheme

However as it’s being paid at the beginning of the tax year the system thinks this is your monthly pay and will usually assume you receive 12 times that amount in a year from now on and tax accordingly. It should adjust your tax the following month

It's this - it's really annoying and means you may well be being taxed at the next tax bracket up as the system thinks you are going to be earning that amount every month.

I've had this in the past with bonuses and redundancy payments but it does balance out in the end. Why there isn't a box to tick for 'one-off payment' I have no idea though.

Letittow · 26/06/2023 09:48

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

The issue is whether you think they're ridiculous or not is that these real term pay cuts are part of the reason staff are leaving.

Public services affect us all, we should be worried that there aren't enough teachers (even if you don't have children the issues and affects of this are far reaching); the military is at its smallest size since the 1800s despite us facing a plethora of different threats; there are thousands upon thousands of qualified HCPs leaving the health service meaning there are thousands of vacancies with the government hoping to sort it out by recruiting lesser qualified new roles which will affect patient care.

There are also many vacancies across all levels and most public service sectors if you find it unfair, plus people who work in these roles pay tax too.

Letittow · 26/06/2023 09:50

RosesAndHellebores · 26/06/2023 09:41

The NHS aren't grateful for the bonus. Yes I get they feel overworked and underpaid. However, presumably that gives the public the right to be ungrateful for shit care, long waits and shit systems then.

The public should have been kicking up a stink decades ago rather than sucking the grateful egg, because it's free. It isn't we all pay tax and ni towards it. That is all too frequently conveniently forgotten.

Any earnings I receive, I have to.pay tax and ni. There shouldn't be an exception for the NHS. Oh wait, there could be if it was possible to contract out of NHS services and fund an alternative privately, which I would do in a heartbeat.

If the public would have helped air their discontent (which many HCPs have been shouting about for years whilst no one cared) then yes perhaps things would be better. As already said wages and conditions would no doubt be better for staff as well in a different model, I'm sure they'd welcome you fighting for this.

BinturongsSmellOfPopcorn · 26/06/2023 10:00

My trust made it non pensionable, so it worked out quite nicely

Nothing to do with your Trust - it's non-consolidated, and therefore non-pensionable, for everyone. Which might seem nice on the day it arrives without the pension deduction, but is a permanent loss on the amount in your pension and on all future payrises.

And as Ginmonkey and others said, a lot of people will find this tips them over a monthly or even annual threshold - universal credit, tax band etc - because 3 moths backpay for this year and 2 lump sums for the previous tax year are all being paid in 1 go.

At least it's not as bad as last year, when the pension contribution thresholds meant a lot of people got a 'payrise' that meant their net pay went down.

Iwasafool · 26/06/2023 10:05

Spendonsend · 26/06/2023 06:34

I dont think i would be thrilled with a bonus instead of a proper pay rise this year and last. A pay rise effects every year going forward whereas this doesnt.

I do agree that its not so much people dont understand tax its just if you get one off things like this the tax shows more because generally none of it has any personal allowance applied. Its like when you have second or third jobs.

I think that is a very important point that people don't tend to acknowledge. In the long run it adds up to alot of money over the coming years.

Teleguard · 26/06/2023 10:16

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

On average private sector employers have put wages up more than public sector

SilverOrchid · 26/06/2023 10:18

OhmygodDont · 26/06/2023 08:34

Where dh works they do. He gets told his bonus is X and that’s what hits his account because they make sure in his pocket is say 2k.

That’s an awful way of doing it. So I’d get a greater bonus because I have rental property (and so I’m in a higher tax bracket than my peers) to make sure I receive the same net amount they do? Or I pay more into my pension so I get more to make sure I receive the right net amount? Or those who have student loans get more paid than those who don’t?

The fair thing to do is give everyone the same gross as that costs the company the same for every person and then each individual pays their correct taxes.

Tiredalwaystired · 26/06/2023 10:21

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

Private sector pay increases has been outstripping public sector for a decade. And still is. It’s over 7% in the private sector currently

Gingernaut · 26/06/2023 10:22

This 'bonus' is not a bonus

It's a relatively cheap, one off payment which raises last year's pay, but which won't increase hourly pay in the future

Band 2 is still only £1.03 over NMW

Add to it, the back pay from the date the pay rise was awarded and it is, tbf a largish sum of money, but it's not a bonus

https://www.nhsemployers.org/articles/pay-scales-202324

https://www.gov.uk/national-minimum-wage-rates

Pay scales for 2023/24

NHS terms and conditions annual, hourly and HCAS pay values scales for 2023/24

https://www.nhsemployers.org/articles/pay-scales-202324

NoraBattysCurlers · 26/06/2023 10:23

Fandabedodgy · 26/06/2023 09:35

Public sector workers generally are tone deaf to the fact that many in other sectors are getting zero pay rise, zero bonus and are funding public sector rises through taxation.

Let's all be happy to accept zero pay rises, or pay rises well below inflation, and become progressively poorer. That way organisations can become even more profitable.

Yippee. We're winning the race to the bottom.

BungleandGeorge · 26/06/2023 10:26

Ignoring the amount, it’s not difficult to understand why this is a problem for some. It’s back pay, it’s not a bonus. It should have been paid last year but instead it’s paid as a lump sum in the next tax year. So will put some people into the next tax threshold, over the threshold for child benefit, mess up universal credit. If it had been paid in the correct year, the year that it was earned people would receive far more in their pocket- not difficult to understand why that’s unfair?

3BSHKATS · 26/06/2023 10:28

BungleandGeorge · 26/06/2023 10:26

Ignoring the amount, it’s not difficult to understand why this is a problem for some. It’s back pay, it’s not a bonus. It should have been paid last year but instead it’s paid as a lump sum in the next tax year. So will put some people into the next tax threshold, over the threshold for child benefit, mess up universal credit. If it had been paid in the correct year, the year that it was earned people would receive far more in their pocket- not difficult to understand why that’s unfair?

So therefore, it’s the payment method that they cross about not the amount of the bonus ?

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