foreilly44
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Employee Bonuses that are not guaranteed - considered in 'expected adjusted net income' ?
Please could a HMRC Admin respond to the below: Im trying to verify the question of whether my 'expected adjusted net income' for the year will end up as under £100k to check for tax free childcare eligibility. Sometimes at the end of the tax year employees in my company receive a discretionary bonus, however it is not guaranteed, and the amount given to those who are fortunate enough to get it - is never set - it depends on company performance and personal employee performance that year. Am I right in saying that this is not then included in my 'Expected adjusted Net Income' for the year - given that its not guaranteed? thanks in advance for any advice given. At Obviously if i had any 'valid' expectations on what the share price would be in a years time, id be able to make a lot of money doing something else! -If bonuses themselves are only potential/discretionary (ie not certain) should they be included in 'expected earnings' (irrespective of being in cash or shares)? -If the bonus would be in shares, how should I assess the value of these in advance of the issue date given it is unknown what the value will be in march? The share price itself is obviously fairly volatile in value, with a spectrum of potential outcomes which include a negligible value. Do i need to use the share price at the date of the reconfirmation questions to factor into this? Thanks,