Welsh Care Home Staff Bonus - HMRC plan to tax it
My partner works in a care home, and was dropped to £95 a week wages during the periods when we had to self-isolate (once with symptoms, once on the advice of doctors). My partner has also been forced to take annual leave as the care home has seen a drop in revenue.
So, it cheered my partner up when the news of the £500 bonus to Welsh Care Home staff was announced a number of weeks ago. However, the payment has been delayed because the UK Government intends to impose tax and NI contributions on the bonus (essentially taxing the Welsh Senedd).
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
They never said they wouldn't tax it. The Welsh government said they would talk to Westminster with a view to it being paid in full without deductions, but I guess that wasn't possible.
The Welsh government could just get around this by increasing the payment to about £650 to ensure those eligible get about £500 after deductions.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
The Bloop
They never said they wouldn't tax it. The Welsh government said they would talk to Westminster with a view to it being paid in full without deductions, but I guess that wasn't possible.
The Welsh government could just get around this by increasing the payment to about £650 to ensure those eligible get about £500 after deductions.
Why should the Welsh Government increase the cost of the scheme to satisfy the UK Government? Whilst my partner was earning £95 a week for 3 weeks, my neighbours were sat in their gardens, furloughed at 80% of their wages. In fact, that scheme is so popular that 2 of them have refused the opportunity to go back to work.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
CCFCC3PO
Why should the Welsh Government increase the cost of the scheme to satisfy the UK Government? Whilst my partner was earning £95 a week for 3 weeks, my neighbours were sat in their gardens, furloughed at 80% of their wages. In fact, that scheme is so popular that 2 of them have refused the opportunity to go back to work.
If workers in the care profession were paid a decent wage to start with, there wouldn't be a need to pay them a bonus (taxed or untaxed)
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
The Bloop
If workers in the care profession were paid a decent wage to start with, there wouldn't be a need to pay them a bonus (taxed or untaxed)
Absolutely.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
CCFCC3PO
My partner works in a care home, and was dropped to £95 a week wages during the periods when we had to self-isolate (once with symptoms, once on the advice of doctors). My partner has also been forced to take annual leave as the care home has seen a drop in revenue.
So, it cheered my partner up when the news of the £500 bonus to Welsh Care Home staff was announced a number of weeks ago. However, the payment has been delayed because the UK Government intends to impose tax and NI contributions on the bonus (essentially taxing the Welsh Senedd).
I hope your boyfriend and the other care home staff get the full bonus. It's more than deserved for what they've had to endure - not just recently :thumbup:
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Any payment through their salaries would probably get picked up for tax automatically.
It most probably not so much a decision to tax it so much as not having the necessary in place to not tax it.
Bloop's suggestion is the easiest solution, which is probably why no one in the position to do it actually will!
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
xsnaggle
Any payment through their salaries would probably get picked up for tax automatically.
It most probably not so much a decision to tax it so much as not having the necessary in place to not tax it.
Bloop's suggestion is the easiest solution, which is probably why no one in the position to do it actually will!
I'm not sure if what I'm about to say is incredibly stupid or not, but that's never stopped me before.
Couldn't the care workers just get cheques sent to them for the full amount and then not have any tax on it?
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
CCFCC3PO
My partner works in a care home, and was dropped to £95 a week wages during the periods when we had to self-isolate (once with symptoms, once on the advice of doctors). My partner has also been forced to take annual leave as the care home has seen a drop in revenue.
So, it cheered my partner up when the news of the £500 bonus to Welsh Care Home staff was announced a number of weeks ago. However, the payment has been delayed because the UK Government intends to impose tax and NI contributions on the bonus (essentially taxing the Welsh Senedd).
I'm guessing the £95 per week is SSP? Is your partner on a zero hour or doesn't the care company-Agency not have to pay full sick pay?
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
Heisenberg
I hope your boyfriend and the other care home staff get the full bonus. It's more than deserved for what they've had to endure - not just recently :thumbup:
Thanks - I hope so too. Morale is pretty low in a lot of these places, and many are seeing shifts cut back too. I was hoping that, after this, nurses, care home staff, cleaners and so on would get a bit more recognition. A while back the Health Secretary said "Now is not the time to talk about wages", but there never has been a time for this Government, and I don't think there ever will be. Unless it wins votes.
It is frustrating that every time a care worker gets ill they get put on SSP of £95 a week. I don't know if that is the case in all care homes, I hope it isn't because people will start showing up and hiding symptoms.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
Heisenberg
I'm not sure if what I'm about to say is incredibly stupid or not, but that's never stopped me before.
Couldn't the care workers just get cheques sent to them for the full amount and then not have any tax on it?
Those cheques would have to come through HMRC i presume. A Tax break is an option as is decent pay and working conditions. These companies are bastards. Care workers really need to get organised and join a union.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
xsnaggle
Any payment through their salaries would probably get picked up for tax automatically.
It most probably not so much a decision to tax it so much as not having the necessary in place to not tax it.
Bloop's suggestion is the easiest solution, which is probably why no one in the position to do it actually will!
You may be right on that, I don't think the burden should be placed on the Welsh Government though. But, in saying that, the bonus scheme is not being reciprocated in England and maybe the Government are concerned with the "If they are getting it, we should too" calls.
I always thought the scheme would be paid in the form of a cheque, direct from the Welsh Government, or a bank transfer, which would negate the tax issue.
I remember getting a £20 bonus once, and in the pay slip it showed as £22.12 (or something like that) to cover the extra tax and NI so you may be right.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
Tuerto
I'm guessing the £95 per week is SSP? Is your partner on a zero hour or doesn't the care company-Agency not have to pay full sick pay?
This bit has always been confusing. I thought the sick pay was determined by the average number of hours over a 6 week period, but on talking to my partner, it turns out it is actually Holiday Pay that is worked out that way. I think it is more a case that the care company doesn't have to pay full sick pay, and that may be why my partner has taken sick days off as annual leave in the past.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
Heisenberg
I'm not sure if what I'm about to say is incredibly stupid or not, but that's never stopped me before.
Couldn't the care workers just get cheques sent to them for the full amount and then not have any tax on it?
They may be avoiding thousands of care workers lining up in banks with cheques in hand.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
CCFCC3PO
They may be avoiding thousands of care workers lining up in banks with cheques in hand.
That's certainly an issue. Just wondered if it was possible as a way of avoiding tax on the bonuses.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
Quote:
Originally Posted by
Heisenberg
That's certainly an issue. Just wondered if it was possible as a way of avoiding tax on the bonuses.
There isn't.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
The tax rules are the same for everybody. You get paid - you get taxed. You get a bonus - it gets taxed. That's the way it works. I don't understand why anyone thinks it might be different.
Re: Welsh Care Home Staff Bonus - HMRC plan to tax it
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Originally Posted by
The Bloop
There isn't.
Quote:
Originally Posted by
tforturton
The tax rules are the same for everybody. You get paid - you get taxed. You get a bonus - it gets taxed. That's the way it works. I don't understand why anyone thinks it might be different.
My knowledge of tax stems as far as my wages go through PAYE :hehe:
I remember when I was volunteering and I used to get cheques for my mileage (which I assumed that I didn't have to declare as an income as I wasn't being paid for work) and wondered if this 'bonus' would potentially be looked at in a similar manner. Instead of calling it a bonus, maybe a 'good will gesture' or something?
I bet I'm about to find out that I should have declared my mileage to HMRC :hehe:
