Majority of workers unaware of tax implication in cash bonuses - Aviva

The provider found a mere 9% of people who received a cash bonus in the past opted to have part of it paid into their pension, a move known as ‘bonus exchange'. Instead, 39% chose to spend it on a treat like shopping or a holiday. The provider had surveyed 2012 adults in February. Aviva pointed out that by opting to take the bonus in their pay packet, employees are paying tax and national insurance on their bonuses.  This expense could be avoided by choosing bonus exchange, which would carry the additional benefit of increasing their pension saving while also benefiting from a gove...