Tax Calculation

Pippin89 · 12 March 2018 at 12:57PM

Hi All

I am hoping someone can help me calculate how my upcoming bonus will be taxed.
In April (at the beginning of the new tax year) I will be getting a bonus of £10,200 which will be paid through PAYE. My normal salary is £35k. I think I am right in saying that when the tax is calculated they will assume that I will be earning that extra £10.2k every month and therefore I will pay a huge amount in tax and then I will pay less tax throughout the year until it balances out??? Is this right? Could anyone with a better understanding than me calculate how much of my bonus I will actually get upfront in April??

Thank you in advance

Pip

Tom99 · 12 March 2018 at 2:03PM

[FONT=Verdana, sans-serif]I believe you will get 1/12th of your £11,850 tax free allowance and 1/12th of your £34,500 20% allowance in April.

[/FONT] [FONT=Verdana, sans-serif]So if your salary in April is £35,000/12 + £10,200 = £13,116.67 you will pay tax:

[/FONT] [FONT=Verdana, sans-serif]£987.50 * 0% = £0[/FONT]
[FONT=Verdana, sans-serif]£2875 * 20% = £575[/FONT]
[FONT=Verdana, sans-serif]£9254.17 * 40% = £3701.67

[/FONT] [FONT=Verdana, sans-serif]Total tax in April £4276.67[/FONT]

getmore4less · 12 March 2018 at 3:21PM

Don't forget the NI,, some that will now be at 2% rather than 12% if it was spread throughout the year so there is a saving.

Tax Calculation

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