Bonuses/Overtime and Salary Sacrifice
Posted: Thu Jan 11, 2024 1:45 pm
Hi all,
Lots of useful advice here so I'm really grateful for all the contributors efforts.
I am now receiving quarterly bonus commissions and although not guaranteed could wind up with me paying big sums to the IVA company and while all is fair in love and war had some questions surrounding this that don't seem clear in my agreement.
It looks like regardless of the period the bonuses cover, my IVA company (CreditFix) will be treating this as a monthly payment and subsequently I will get to keep 10% first then have to pay 50% of the remaining sum to them,
With regards to this, are these calculations done before Tax or after tax? as it stands it looks like I could wind up getting taxed a lot due to the bump this would have on my pay packet.
Secondly, our company offers Salary Sacrifice schemes where we can buy hardware directly either as one lump sum or in monthly instalments. I am desperately in need of a new computer for the home office and was wondering if I am to purchase this from them as a salary sacrifice, and for example, if my bonus was £1000 and this took it down to £500 would they still calculate this based off the £1000 before deductions and tax or would they only care about the £500 that hits my payout?
I am enquiring with my work to see if this can be paid out over a 3 month period following rather than in one lump sum as this may help me not have as much of it go to them.
Thank you for the help in advanced!
Regards,
imbadwithmoney
Lots of useful advice here so I'm really grateful for all the contributors efforts.
I am now receiving quarterly bonus commissions and although not guaranteed could wind up with me paying big sums to the IVA company and while all is fair in love and war had some questions surrounding this that don't seem clear in my agreement.
It looks like regardless of the period the bonuses cover, my IVA company (CreditFix) will be treating this as a monthly payment and subsequently I will get to keep 10% first then have to pay 50% of the remaining sum to them,
With regards to this, are these calculations done before Tax or after tax? as it stands it looks like I could wind up getting taxed a lot due to the bump this would have on my pay packet.
Secondly, our company offers Salary Sacrifice schemes where we can buy hardware directly either as one lump sum or in monthly instalments. I am desperately in need of a new computer for the home office and was wondering if I am to purchase this from them as a salary sacrifice, and for example, if my bonus was £1000 and this took it down to £500 would they still calculate this based off the £1000 before deductions and tax or would they only care about the £500 that hits my payout?
I am enquiring with my work to see if this can be paid out over a 3 month period following rather than in one lump sum as this may help me not have as much of it go to them.
Thank you for the help in advanced!
Regards,
imbadwithmoney