Returning golden handcuffs

[del mar]

Morning,

Guy in our team has to return his golden handcuffs Gross.

Say it was £20 he received £10, but if he leaves he has to return £20.

He is out of pocket the tax, how would he go about collecting that back from hmrc ?

thanks

Del

[LC23]

https://www.bdo.co.uk/en-gb/insights/tax/employer-...

And then look at the Employment Income Manuals (links in the above).

[Mattt]

Would it be a truly negative situation as per the link?

Or are we talking that he earned £50k and has to repay £5k therefore his earnings are now £45k?

[Mattt]

It's a st situation regardless and one I've been in before.

I try and avoid them now, as the whole time I felt I was working there because I had to be (with this massive chunk of cash over me) rather than because I wanted to be.

[Jimmy Recard]

Mattt said:

Would it be a truly negative situation as per the link?

Or are we talking that he earned £50k and has to repay £5k therefore his earnings are now £45k?

Interesting because I'm looking into this at the moment.

I offered a promotion to one of my staff, which would involve him doing some extra training and taking on extra responsibilities, of course for a pay rise. He eagerly accepted.

A couple of months later it was time for the training to start and he just refused to do it. He said he no longer wanted it, but he had already had a couple of months on the higher pay of his new role.
I think the best thing to do (for us) is just to reduce his pay to the previous level and take the hit, rather than asking him to repay money I doubt he now has. He is PAYE and both levels of pay are in the 20% basic rate.

[del mar]

Thank you for the links, at least it is a recognised situation.

With regard to quantum, I don't know the exact amount, but it could be that it is actually negative earnings.

A Great one to explain to the wife "this year I have earned minus £10,000 !"