IR35 Discretionary Bonus IR35 Discretionary Bonus
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  1. #1

    Nervous Newbie


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    Default IR35 Discretionary Bonus

    Hi,

    I am currently negotiating my contract and have seen in both Giant's and Nasa's contracts that it mentions:

    1.) National Minimum Wage
    2.) Bonus which is discretionary.

    I was told that on my monthly payslip it would be split as above.

    What is there to stop an Umbrella from actually paying the Bonus (majority) amount of my wage?

    Has anyone found companies/umbrellas that will amend wording as such. I note that most of these umbrellas are very reluctant to amend their "standard" contracts.

    Would value thoughts and peoples experiences to date!

    Many thanks

    Ash

  2. #2

    My post count is Majestic

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    Mods: might want to move this to Business/Contracts before the radiator-bleeding brigade of gladiators arrive

  3. #3

    Godlike

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    Quote Originally Posted by Ash12004 View Post
    Hi,

    I am currently negotiating my contract and have seen in both Giant's and Nasa's contracts that it mentions:

    1.) National Minimum Wage
    2.) Bonus which is discretionary.

    I was told that on my monthly payslip it would be split as above.

    What is there to stop an Umbrella from actually paying the Bonus (majority) amount of my wage?

    Has anyone found companies/umbrellas that will amend wording as such. I note that most of these umbrellas are very reluctant to amend their "standard" contracts.

    Would value thoughts and peoples experiences to date!

    Many thanks

    Ash

    you want to be here..... https://www.contractoruk.com/forums/umbrella-companies/

    and here Google
    See You Next Tuesday

  4. #4

    bored now

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    Quote Originally Posted by Ash12004 View Post
    Hi,

    I am currently negotiating my contract and have seen in both Giant's and Nasa's contracts that it mentions:

    1.) National Minimum Wage
    2.) Bonus which is discretionary.

    I was told that on my monthly payslip it would be split as above.

    What is there to stop an Umbrella from actually paying the Bonus (majority) amount of my wage?

    Quick answer - The other terms of your contract.

    Longer answer - your wages are split as the minimum / living wage is a legal requirement (and needs to be paid even for holidays). The rest of the money received is treated as a bonus as that makes things easier all round as they will vary...
    merely at clientco for the entertainment

  5. #5

    Double Godlike!

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    Quote Originally Posted by Ash12004 View Post
    Hi,

    I am currently negotiating my contract and have seen in both Giant's and Nasa's contracts that it mentions:

    1.) National Minimum Wage
    2.) Bonus which is discretionary.

    I was told that on my monthly payslip it would be split as above.

    What is there to stop an Umbrella from actually paying the Bonus (majority) amount of my wage?

    Has anyone found companies/umbrellas that will amend wording as such. I note that most of these umbrellas are very reluctant to amend their "standard" contracts.

    Would value thoughts and peoples experiences to date!

    Many thanks

    Ash
    The description of any part of your remuneration is irrelevant - the amount of tax you will pay is the same. If any part of your remuneration is 'discretionary' it means they are not obliged to pay it. I've never come across this, but I'd be 'outta there' like Usain Bolt on illegal meds if anyone presented me with a brolly arrangement like that.
    I honestly didn't realise Giant were still around. There was a stage in the early 2000's when Giant were regarded as roughly on a par with a dose of bubonic plague. That was as accountants 'who had a habit of doing everything late or not at all' (my brother-in-law used them for just long enough to drop several hundred quid in fines).
    If you have a choice as to using them or someone else, I'd probably go for the 'someone else' option...
    His heart is in the right place - shame we can't say the same about his brain...

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