New salary and a bonus - tax calculation
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JessicaScarlet
Posts: 2 Newbie
in Cutting tax
My employer has decided to increase my pay by 3% which has put my pay up from £22500 to £24569 annually and it is due to start this month (December) but I have also been given a £620 bonus which will also come this month.
I'm trying to figure out how this will impact my tax. I'm on Student Loan repayment plan 2 as well. Can anyone tell me how I can work this out?
Thank you!
I'm trying to figure out how this will impact my tax. I'm on Student Loan repayment plan 2 as well. Can anyone tell me how I can work this out?
Thank you!
0
Comments
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Someone cant count.
If you earned £22500 and got a 3% pay rise you would then be earning £23175.
If you now earn £24569 and did earn £22500 its slightly over a 9% pay rise.
Im assuming you are on PAYE? In which case your tax should be deducted appropriately. You will pay a higher sum for the months of the bonus but it should be an accurate deduction. Anything over £11,500 for the year and you will pay 20% tax.
Should be similar with student loans. In that you only repay 9% on earnings above £1750 a month. So again this will increase but it should be increasing.
https://www.thesalarycalculator.co.uk/salary.php
have a play on there. If you can afford to wait its usually much easier checking over it all at year end (april) when you will have all the information you need as opposed to speculating on the information you need.0 -
Youre welcome.0
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as for the bonus, this calculator does them rather well
https://www.uktaxcalculators.co.uk/payslip-calculator.php0 -
I just literally typed up what I was given in a letter by my employer there's no need to be snarky...
I'll just play around on the calculator.0 -
JessicaScarlet wrote: »I just literally typed up what I was given in a letter by my employer there's no need to be snarky...
I'll just play around on the calculator.
you will need to look at the differences of whether it is a 3% increase (in which case the new salary is incorrect in the letter)
or if the new salary is correct and the % stated in the letter is incorrect
Your employer should be able to confirm the correct numbers when you point out the discrepancy to them0
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