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  • FIRST POST
    • Marshyman
    • By Marshyman 17th May 17, 2:00 PM
    • 52Posts
    • 10Thanks
    Marshyman
    Tax taken from bonus
    • #1
    • 17th May 17, 2:00 PM
    Tax taken from bonus 17th May 17 at 2:00 PM
    Hi all,

    I'm looking for a bit of clarity on how and why I have been taxed different amounts on 2 identical bonuses I have received

    The company I work for has just paid the last 6 monthly bonus (it is now changing to once every year) and I have been taxed much differently on the last 2 I have received (Nov 16 and May 17)

    Il try to put as much detail as possible but let me know if you need anymore:

    November 16: I was earning an annual basic salary of £29,435 and received a bonus of £5643. Tax code was 1028L. Total monthly income before tax £8095.92. Tax deducted £1447.60. NI deducted £439.58. Take home pay £6208.74

    May 17: I am now earning an annual basic salary of £30,906 and received a bonus of £5643. Tax code is 1104L. Total monthly income before tax £8206.10. Tax deducted £2095.33 NI deducted £457.56. Take home pay £5,655.21

    The next bonus i receive will be in June 18 so my earnings will be no where near the higher rate tax band for the remainder of this financial year

    Does this mean I am due a tax rebate lump sum or over the remaining tax year months?

    Thanks all, as I say if you need more info let me know
Page 1
    • General Grant
    • By General Grant 17th May 17, 2:38 PM
    • 614 Posts
    • 720 Thanks
    General Grant
    • #2
    • 17th May 17, 2:38 PM
    • #2
    • 17th May 17, 2:38 PM
    Without actually going through all the figures -

    The November payment was more than half-way through the tax year so you had the benefit of more of your tax-free allowance

    The May payment was only into the second month of the tax year so you had less of your allowance against which the payment would be set.

    So over the rest of the year you will recoup what may be considered as over-payment of tax. It will sort itself out.
    • getmore4less
    • By getmore4less 17th May 17, 2:51 PM
    • 28,820 Posts
    • 17,242 Thanks
    getmore4less
    • #3
    • 17th May 17, 2:51 PM
    • #3
    • 17th May 17, 2:51 PM
    Not just the tax free allowance there is the 20% allowance as well that will only have 1or2 months worth depend on if this is a month 1 or month 2 payment.


    if this was month 2 it will look like earnings for the year will be around
    ((8205-5643)*2 + 5643)*6 = £64602.
    • Marshyman
    • By Marshyman 17th May 17, 5:06 PM
    • 52 Posts
    • 10 Thanks
    Marshyman
    • #4
    • 17th May 17, 5:06 PM
    • #4
    • 17th May 17, 5:06 PM
    Ok thanks both, it is month 2 and YTD earnings are £10,813

    Is it likely that I will have to wait until the end of the year before a rebate or will it be adjusted monthly once I continue to receive the basic income only each month of £2565 gross
    • pioneer22
    • By pioneer22 17th May 17, 6:25 PM
    • 390 Posts
    • 149 Thanks
    pioneer22
    • #5
    • 17th May 17, 6:25 PM
    • #5
    • 17th May 17, 6:25 PM
    Ok thanks both, it is month 2 and YTD earnings are £10,813

    Is it likely that I will have to wait until the end of the year before a rebate or will it be adjusted monthly once I continue to receive the basic income only each month of £2565 gross
    Originally posted by Marshyman
    It may adjust and will adjust the amount of tax you pay. Or more likely stay the same and you will need to claim it back like a rebate.
    • getmore4less
    • By getmore4less 17th May 17, 6:31 PM
    • 28,820 Posts
    • 17,242 Thanks
    getmore4less
    • #6
    • 17th May 17, 6:31 PM
    • #6
    • 17th May 17, 6:31 PM
    higher rate kicks in when target is over £45k
    As long as you are PAYE and on the right tax code it sorts itself out(using some rounding)

    month, total for year, target for year

    3 £13,200, £52,800
    4 £15,800, £47,400
    5 £13,300, £31,900

    All sorted by August(but watch the take home it will go down in Aug
    • agrinnall
    • By agrinnall 17th May 17, 7:20 PM
    • 17,690 Posts
    • 13,385 Thanks
    agrinnall
    • #7
    • 17th May 17, 7:20 PM
    • #7
    • 17th May 17, 7:20 PM
    It may adjust and will adjust the amount of tax you pay. Or more likely stay the same and you will need to claim it back like a rebate.
    Originally posted by pioneer22
    The bit I have bolded is wrong, there are almost no circumstances in which someone on PAYE would not have the additional tax paid in month 2 of the tax year automatically returned over the following months.
    • jamesperrett
    • By jamesperrett 18th May 17, 9:35 PM
    • 634 Posts
    • 302 Thanks
    jamesperrett
    • #8
    • 18th May 17, 9:35 PM
    • #8
    • 18th May 17, 9:35 PM
    I've had this happen a few times - you'll find that you pay less tax in the subsequent months of the tax year which will give your take home pay a nice boost.
    • Marshyman
    • By Marshyman 19th May 17, 1:27 AM
    • 52 Posts
    • 10 Thanks
    Marshyman
    • #9
    • 19th May 17, 1:27 AM
    • #9
    • 19th May 17, 1:27 AM
    Thank you all, il wait to see what next months pay packet looks like!
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