OUTBONUS - Tax treatment

[J7J]

How should an outbonus be treated for income tax and VAT?

Please help :-)

[Dave A]

The options seem to be treat it as income, or as a refund of insurance payments already made.

Does the insurance contract give any guidance as to whether this is a refund or a benefit payout in the eyes of the insurer?

[geraldenek]

dave has a valid point seeing that i do not have an outsurance contract to see what they say....

i tried phoning them... think they guy on the other side must have thought i am crazy asking such a question - money tax free?! as stated on their website and still asking questions . But he said he will get back to me i just need to hold for a sec... and then after a while i heard the sound of a line being disconnected.

[Dave A]

i tried phoning them... think they guy on the other side must have thought i am crazy asking such a question

Just not used to dealing with people that actually got a payout, perhaps

[J7J]

Hi,

Thank you for your responses. I have decided to treat it as other income (created a new account for this, this will be the same account that I will use for insurance claims). As VAT will need to be paid over for this as well as income tax, I thought this would work well.

[geraldenek]

hi J7J

according to their website it is tax free... so you might go and read the contract as to the reason how they treat the payout as per Dave's first reply....

[Dave A]

Maybe it's a dividend and Outsurance has already paid the taxes