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Golden Hello and goodbye again - tax

Discussion in 'Modern foreign languages' started by schooloffysh, Aug 25, 2011.

  1. Now, I knew that the Golden Hello would be taxable, but just how taxable was a bit of a shocker! Anyone else a bit surprised by this or able to shed any light on it? Can I expect any portion of it back come April? Of a £2500 bonus I have just received £1576 in addition to my normal wage... almost £1000 is a bit of an excessive amount for the government to steal isn't it?
     
  2. i feel your pain! the same thing happened to me last year i ended up receiving £200 back in april.
     
  3. jubilee

    jubilee Star commenter

    20% tax = £500 deducted.
    NI @ contracted (reduced) rate if in the pension =approx £250
    Student Loan repayment @ 9% = £224
    You're unlikely to get a rebate in April 2012 if you have been in continuous employment since 6th April 2011 as PAYE adjusts your tax throughout the year.
    You've received more than your colleagues who couldn't even apply for GH. It's extra pay and is treated just like any other pay.
    Tax as theft? The money was a bonus from the government that you have not had to do anything extra to 'earn'.

     
  4. Aha! I was hoping someone would have brought this up as I'm very confused... I applied for my incentive grant when I started an eligible post this month. It was approved and it's being put into my account via (B)BACS, but my electronic receipt says that the full £2500 is being transferred.
    I'm in Wales, and this TTIS Grant dates back to when I completed my PGCE in 2006. Is it taxable? If it is, what are the steps to declare and repay the amount that should have been deducted?
     
  5. jubilee

    jubilee Star commenter

    Isn't the TTIS grant paid to trainee teachers and is the equivalent of the bursary paid to sometraainees in England?
    If so, both grant and bursary are tax-free.
    The Golden Hello mentioned in the rest of the thread is paid to teachers in a contracted post in the year after their Induction year and is thus part of their pay (and is taxable)
     
  6. The GH is an extra pay and is taxable. As an NQT still trying to get a job to finalise my 3rd term to get that money, I would say"wish yourself lucky,mate!"
     
  7. I had a huge shock when I got mine! But it's an extra that the vast majority of NQTs don't get and we should count ourselves very lucky, so I wouldn't complain too much about it as you're unlikely to find a sympathetic ear ...
     
  8. Okay, from the Welsh perspective I can now clear this up having been on the phone to both HMRC and the Welsh Assembly Government.
    The Teaching Incentive (the Welsh equivalent of the Golden Hello) is paid directly into your bank account from the WAG. It does not go through your wage packet or your school, and as it is classed as a grant by the HMRC and does not come into contact with your actual earnings it is NOT TAXABLE.

    This information was given to me by both HMRC and WAG when I called to enquire.

    For England I can't help, I'm afraid :/
     
  9. Random175

    Random175 New commenter

    Sometimes I wonder if some fellow teachers know where their salary comes from ...taxation d'oh!
     

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