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Where Taxpayers and Advisers Meet

NIC on post-P45 bonus

Lawrence McAulay 01
Posts:191
Joined:Wed Aug 06, 2008 3:39 pm

Postby Lawrence McAulay 01 » Wed Oct 04, 2006 3:39 am

I am looking at the following case.

An employee has worked for his employer company for a number of years, but has now left. Each year, a couple of months after the company's year end, the company has calculated a bonus and paid it to him.

This year, the bonus was paid to the employee after he had left and after he had been issued with his P45.

I am aware that the company should deduct basic rate tax, but what needs to be done about Class 1 NIC?

Many thanks in advance.

L

Lexiconis
Posts:37
Joined:Wed Aug 06, 2008 3:43 pm

Postby Lexiconis » Wed Oct 04, 2006 4:09 am

There are no special rules for NIC after the issue of the P45. It should therefore be calculated on a normal basis for the employee.

Lawrence McAulay 01
Posts:191
Joined:Wed Aug 06, 2008 3:39 pm

Postby Lawrence McAulay 01 » Wed Oct 04, 2006 4:49 am

Thanks Lexiconis.


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