Christmas bonus

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murdoch

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suffolk
So, we’ve had a half decent year making kitchens and I like to give the lads a bonus each. Does anyone know if this can be done tax free and legally? If I just add it on to the wages they will be taxed, but could I give it as a tax free gift? I’m not trying to save myself tax but them if it can be avoided, takes the shine off a bonus!!
 
I think no matter which way you look at it, it's some form of income, so the government wants their slice of it.

I don't think anyone would complain about having a couple of notes extra in with their payslip at the end of the month though.
 
No, it has to be part of the pay slip, I just do it as a bonus on the pay slip but they are taxed on it in the same way as overtime.
We've also had a good year, the guys get a good bonus, about a 3/4 of a weeks salary, we are also taking them out tomorrow for a meal and then go karting.
The team we have at present is probably the best we've ever had and every little bit helps to keep them on board.
 
Cheers Bob, thought so, we usually do about a weeks wage as a bonus but as it’s quite a chunk more this year I was hoping to help them keep it all!
Meal and go karting with us too, your totally right, treat them well and it’s amazing how loyal and hard working they become.
 
Weeks wages as a bonus! I wish I had a job like that,makes my pension bonus of a tenner look a bit pathetic.You sound like great bosses to work for Merry Christmas and a Happy and Prosperous New Year to you all!
 
Way back when.. the company I worked for had a profit share scheme, we got cheques at xmas for several thousand (and there were 60 plus staff). Then they changed the law to tax all that, so the company did slap up xmas dinner dances at good hotels, invited spouses, had a free bar, and the company picked up the overnight room hotel bill as legitimate expenses. of course there might have been a couple of "complimentary" expensive bottles or brown envelopes in each room, but i didnt get any, honest guv. :shock:

Now I just get my OAP xmas bonus. a whole £11 this year, The milky bars are on me!
 
Well ,how come you get £11 bonus and I only get £10,I think this calls for an official enquiry,that's why you can afford the Milky Bars!
 
its a consolation prize because I dont get a heating allowance. :evil:
But luckily I have a small Cypriot pension as well, and they know how to treat their old people. From them I get a thirteenth pay packet! Thats another 20 quids worth of sweeties. =D> =D>
 
I’ve done a number of things to maintain and reward staff as they are always the best ambassadors for the company.

I did away with all overtime and introduced Annualised hours. (TUC fully recommend / support annualised hours) I had a standard 4 day week (could be flexed down to 2 days and up to 7 days) where as far as possible the employees decided which days they worked. Typically they gained an extra weeks holiday at no cost to the company each year. It was almost unheard of to work more than 4 days as both peer pressure and a can do attitude ensured that the Friday was not needed to be worked!

Quarterly bonuses based on profit share which typically paid c10% of the monthly wage. To qualify they must not have been absent or late in that period. Timed to pay just before the main school holidays.

All staff salaried and paid monthly. Sick pay for everyone. Everyone would be paid full pay for however long they were off for their first ‘sick’ in any 12 month period and there after a maximum of 3% of the workers using the Bradford score to work out who should get it.

Everyone educated to have a least 5 GCSE’s including maths and English as a minimum of grade C paid for by the company after six months employment (requirement to agree to be trained as part of the employment) there after opportunity to take further education in relavent subjects. I’ve eductaed a number of people up to getting Masters Degrees. They sign to say that whilst in education they will repay the fees if the leave or are fired (not if made redundant) and thereafter once qualified will repay the fees on a sliding scale down to zero after three years. They had to do the education in their own time as part of their commitment (4 day week helped with this)

Above average pay for the sector.

I never had any issues attracting and retaining good quality people.
 
Deema wrote, QUOTE: I never had any issues attracting and retaining good quality people. UNQUOTE:

I'm not surprised mate, that all sounds just so fair and reasonable for all concerned. When I had my own company I didn't employ anyone, but I've had my share of being an employee (of companies ranging from carp to excellent) but never personally experienced such sensible Ts & Cs.

Your people must be very glad indeed that they found you. Purely as a matter of personal interest (no reply needed if you'd rather not), what sort of business are you in?
 
kevinlightfoot":3vem8hl3 said:
Well ,how come you get £11 bonus and I only get £10,I think this calls for an official enquiry,that's why you can afford the Milky Bars!
He's a higher level of management than you, clearly... We don't get bonuses at all. Only managers get those.

sunnybob":3vem8hl3 said:
its a consolation prize because I dont get a heating allowance.
Are you too young, or could you not make it to the UK for one day during qualifying week this year?
Either way, the 18ºC temperatures you're forecast next week suggests your allowance has been outsourced to God... probably as another cost saving initiative by the British Government!
 
I’ve been the MD in a number of PLC’s managing their plants / divisions around the world. I eventually became a shareholder and MD for a family company that made metal parts for cars. It was and still is a household name for anyone who uses the part. We sold the company in 2013 to an American group that this year decided to move the manufacturing out of the UK to the the Eastern Block. They moved the plant and processes lock stock and barrel. The UK plant was the most efficient / cost effective plant they had in the group (who are now the worlds largest maker of this product) however two things caused the decision. The group wanted to move a significant amount of extra work to the UK plant from other plants in Europe in recognition of the work forces flexibility / efficiency. However, a change in the local union Area Convenier who was extremely left wing and militant cajoled the workforce into making (IMO silly) demands to take on the extra work. It led to the first ever vote to strike. The second was the lure of moving manufacturing as an alternative to a country where the labour rate was c30% of the UK thereby achieving significant savings . Well you don’t hold a gun to the Americans as they normally have a bigger gun. So the factory was deemed as being rebellious (which it wasn’t) and all manufacturing moved to a former Eastern Block country. So far after 10 months of trying, the gate cost of the products is significantly higher than when they were made in the UK. Quality and delivery are appalling and from having over 65% UK market share they have lost over half of it in the last two years as a consequence. Everyone lost. It still makes me very angry when I think about it, even though it all happened a few years after I left.

Since taking very early ‘retirement’ I’ve continued in the family tradition of wood working (I will be fourth generation). I think I’d class myself as semi professional as Im fortunate that I dont need to work and only take on commissions that I want to do.
 
Sorry to hear all that Deema.

Unfortunately a depressingly familiar sort of story (in outline) to many companies I've had dealings with (and/or as employee of).

And Unfortunately NOT limited to the UK (the basic principle) by any means - off the top of my read, read also Germany, Switzerland, Turkey, Singapore, Australia - that's without thinking about the list too carefully.

Just as a matter of interest - and not entirely unconnected - there are a number of Swiss companies which now have Chinese or American owners. The Swiss are get quite twitchy all of a sudden - a recent survey of the most successful Swiss companies now APPARENTLY shows that 40% are foreign-owned. Just to underline your story, it's common practice here (not exclusive, but very common with the larger companies) that a 13th month salary (to be paid end Nov/early Dec) is written into the employment contract - in many cases "subject to company performance" - not unreasonable IMO).

Anyway, whether your work it involves "just" you or employees still, more power to your elbow mate.
 
Extra days holiday or additional lump in their pensions? I mention the pensions because that was an option when I got a bonus. That way no tax was paid and also the employer saved the employers National Insurance so generously put that in the pension contribution as well.
 
13th month is pretty common in Europe because there are 13 periods of 4 weeks (28 days) in a year. When I worked in Holland we used to get a 13th month AND a month extra in the summer for 'holiday pay' plus a bonus at Christmas.

It doesn't help any if you grow to hate your job though...
.
 
I work for a company, where Christmas bonus was always paid in Marks and Spencer vouchers, was always greatly received. As everyone said you can never have enough nice towels. In fact most of the blokes I worked with never got to spend them wives and girlfriends used them quickly. Then Amazon vouchers were used, this wasn't as successful for some reason. Now the Christmas bonus is down as travel expenses. Not sure how they work that one out, but that's for them to work out, and am officially employed from Singapore.
 

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