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He is employed, the bonus was paid directly to him en he paid it into his OLD Mutual pension account. It's a personal pension plan.
The bonus wasn't on his payslip.
Hi again.Why the bonus was not taxed is beyond me. The employer may have some questions to answer from HMRC. The bonus should have been subjected to employer's NIC as well as tax and employee NIC.The bonus is employment earnings and so I'd put it into box 3 of the SA103 employment pages.You said the pension plan was a personal pension plan so contributions are made net of basic rate tax relief. In this case, the tax relief of £13,250 will be reclaimed by the pension plan provider. The gross pension payment of £66,250 should be put into box 1 on page TR4 of the core SA100 tax return.The basic rate tax band will be extended by the gross pension payment of £66,250 assuming that your client has sufficient earnings to cover it and higher rate tax relief will be given. Bear in mind though that no tax was deducted from the bonus.I hope this helps but let me know if you have any further questions.
Thanks for the advice, it was very helpful.
one of my client new partner is coming from Greece to live with her in the UK. He has a business in Greece, he will be paying tax on the profits from the business in Greece. Dividend will be transfer to his bank UK bank account. At the moment he is not working in the UK and not for the coming 6 months.
1. Does he have to register for self assessment to pay tax on the dividends?