Bond repayment? Taken from Gross or Net pay?
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Bond repayment? Taken from Gross or Net pay?
My employer forced me to sign a bond for my Trg. I've resigned in the bond period and have negotiated my bond repayment, but they now want to take it from my NET pay rather than my GROSS pay, which in real terms is going to cost me an extra £360. Do I have the right to ask them to take it from gross? The only person benefitting otherwise is HMRC?
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it is from NET of course. The company lent you some money ( in a way), you accepted it, and like a loan at the bank you repay from NET.
You are still in the company then ? Why would you repay the bond ? Couldn't you let it go ? If you have left....a company that "bond" you and want it paid...hmm Whatever...
You are still in the company then ? Why would you repay the bond ? Couldn't you let it go ? If you have left....a company that "bond" you and want it paid...hmm Whatever...
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After a quick chat with one friend it seems that some companies are playing a subtle game. Which is : ( numbers for easiness not real :-) )
Gross Salary : 10000/month
Bond: 2000/month
During the bonding period the gross on the payslip shows 8000...
Net paid ( after all taxes in ) 4000
Whatever happens and the bond has to be repaid ( reason very peculiar if you are still in the same company) THEN, Gross Shows 10000 net around 5200 Less the bond take home is 3200...
During the bond period HMRC "lost" money...who is clean ?
If you left the company..hmmm this will show on your final statement, and the exit option highlighted on you bond contract.
Gross Salary : 10000/month
Bond: 2000/month
During the bonding period the gross on the payslip shows 8000...
Net paid ( after all taxes in ) 4000
Whatever happens and the bond has to be repaid ( reason very peculiar if you are still in the same company) THEN, Gross Shows 10000 net around 5200 Less the bond take home is 3200...
During the bond period HMRC "lost" money...who is clean ?
If you left the company..hmmm this will show on your final statement, and the exit option highlighted on you bond contract.
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I think you should talk to a tax lawyer or perhaps directly to HMRC. The company will have paid the training costs as a business expense - it will appear as a legitimate business cost to them and therefore they wont have paid any tax on that money. Why should you repay it back out of taxed income? not sure that makes sense..
Even if you have to pay it out of taxed income I can't see why you wouldn't be able to get a tax credit for it. Ask HMRC.
Even if you have to pay it out of taxed income I can't see why you wouldn't be able to get a tax credit for it. Ask HMRC.
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I'm not 100% sure about this but I'd be surprised if you were not able to get relief on the value you need to repay so long as it occurs in the same tax year as you earned for the rating. I of course don't know this for sure but it seems reasonable in my head and so you should be able to get the tax back from HMRC, thus making it Gross pay anyway. Give HMRC a call, they're actually quite helpful on such matters 
