Question on wages, tax and my impending bonus

quisait · 12 March 2010 at 6:31PM

Hi folks

I was wondering if someone could help me out here.

Next week I get a one-off bonus payment on my salary. The bonus is very nice and I am wondering how much I will lose out of it.

To help things along, here are my figures:

Tax code: 647L
Annual Salary: £19202.00
Regular salary for March 2010: £1600.17
Bonus payment: £2528.00
Total salary for March 2010: £4128.17

I reckon that after tax and NI my wage packet will be £2928.64.

I am assuming that because of the increase for this single month, plus the end of the tax year that I will get hammered on tax.

How far wrong am I?

Thanks

gmang · 12 March 2010 at 6:38PM

You won't get hammered on tax. You've used up your allowance already and the bonus won't take you into the higher tax rate, so you'll just pay 20% tax and the usual NIC. Your calculations sound about right to me.

Question on wages, tax and my impending bonus

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