Tax Credits - Annual Bonus?

Question

Hi all, I work full time for the John Lewis Partnership, and every April we receive an annual bonus. The amount of bonus differs each year, as it not a set amount: it is a percentage of our annual wage, and this percentage changes depending how well the company has done that year.

How and when should I declare this to the Tax Credits? My annual wage is £13k, but with my bonus it could be anything from £13.5k to £15k, please help. Thank you.

Answer 1

Declare it.

bear in mind that they are also dealing with your PAYE so they will know how much you earn.

If you mean child tax credits I don't really think that it will make any real difference.

Answer 2

Is it child tax or working tax credit because I only earn £11,000 per year single female and only get £4 per week tax credit. It will show on your P60 when renewing your tax credits.

Answer 3

I claim Child's Tax Credit and I don't include my annual bonus as this is not a monthly thing but a one-off thing. Same goes for overtime.

Answer 4

it will show up on your P60 so you could give them an estimated figure base it on a low amount but your P60 is what they go by.....  it will show up at some point so better to mention it rather than have a heafty bill at the end of the year..

Answer 5

Tax credits is based on your previous years earnings. unless there is  a difference of 25,000 you do not need to inform the revenue as it will not affect your current award . The bonus will then be taken into account at the end of this financial year and be used in calculating next years tax credit award. The payments you get are based on last years figures

http://news.bbc.co.uk/1/hi/business/4500...

a complete list of the changes you must notify are at :

http://www.hmrc.gov.uk/taxcredits/tell-u...

Answer 6

Hi don't worry same thing happens to me in work with an annual bonus, i have declared it and it hasn't effected my tax credits in any way :-)

When filling in my claims form i just stated it was an annual bonus and was only based on what the stores profit was thankfully it worked out OK for me. Good luck

Answer 7

You need to tell them now, although tax credits is worked out on last year's income, they will work it out over the whole of the tax year. When you get your P60 you can call them to complete the review which will be more accurate.