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One off payment tax!

55 replies

Cupofteaonesugar · 22/09/2022 06:46

Hi all,
Just a quick question because I'm really unsure.
I normally earn £890 per month. I don't get taxed as I don't earn enough.
My employer is giving us a one off COLP which I'm choosing to take in the form of vouchers. They've told me because I'm opting to do this I will.get taxed next year so I need to put the money for the tax aside. I don't know how to work out how much to put aside? My payment will be £1000!

OP posts:
Hereforit2022 · 30/09/2022 14:12

Sorry to come back to this thread. But I feel like I do not have a clue on this. My employer today has given me the following options:

Take £1000 on top of salary as normal

Spread the £1000 over 6 months

Refuse some or all of the payment

Take in vouchers which will be taxed and NI'd

I have put a journal entry online and they have come back saying it will depend on what my employer put as my earnings. Not really helpful at all.

Any ideas how I would work out what is best?

whowhatwerewhy · 30/09/2022 15:07

@Hereforit2022
Can you go to your employer and ask what they will be putting as your earnings ?

Hereforit2022 · 07/10/2022 14:39

Sorry to bring this back up. My employer has confirmed that the vouchers will be processed as a benefit in kind. Looking online I don't think UC take this into consideration. Can anyone confirm?

Hereforit2022 · 07/10/2022 14:39

Sorry to bring this back up. My employer has confirmed that the vouchers will be processed as a benefit in kind. Looking online I don't think UC take this into consideration. Can anyone confirm?

whowhatwerewhy · 07/10/2022 15:57

I've also Googled and it seems it's not counted as income.

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