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Suspect work bonus - no tax?

3 replies

Panda368 · 21/03/2021 07:50

So, i recieved a 2k bonus from work in Febuary direct into my account, this was documented on email and we were told to expect a company wide bonus.

At this point I've not checked if this is documented in our online paycheques or not but it was a mid month payment and considering i recieved exactly 2k Im now wondering if they have paid tax on it?

We are looking at applying for a mortgage soon and last time i had problems because they bolluxed up my expenses playments (tried to combine into my main pay so my paycheques made no sense to the mortgage company) this is a US company so they dont really get uk tax etc they usually use a uk based paye company to sort things and Im not sure if they passed the bonus through they paye this time or not.

What are the repercussions if they havent sorted tax on the bonus? Is this likely to be flagged by the mortgage company? And what can i do about it? Would i have to declare on a tax return?

OP posts:
bookgirl1982 · 21/03/2021 16:50

They could have opted to gross up the bonus (employer pay the tax). If you log into your personal tax account on the HMRC website you can see what has been put into the system.

If they haven't paid or deducted tax potentially you could get a tax demand or pay more tax next year to make up for it.

MLMsuperfan · 22/03/2021 02:10

If they wrongly treated the bonus payment as a reimbursement (e.g. expenses) not compensation than that could indeed bypass PAYE.

You're supposed to declare any non PAYE earnings on self assessment, although I doubt HMRC would be too punitive in this case as it's so evidently irregular. They'd still recover the tax though.

The other alternative as PP said was that it was grossed up.

Hard to know without seeing the paperwork.

You could try calling HMRC, they can be fairly candid and helpful on the phone.

errorofjudgement · 22/03/2021 07:18

Personally I would err on the side of caution and keep back the taxes that might still be due on this and enjoy the rest.
If your March pay slip doesn’t reference the bonus then can you contact the paye company directly and ask them if it’s been reported? It’s not just the additional paye tax, NIC will also be due from both employee and employer.

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