Tax 'spike' on a bonus

Robertos

Greetings

I receive a bonus each May. Last year this was overtaxed by about £1000 to my calculations. The tax office explained that the computer "thought I would earn that every month and has taxed me accordingly".

It was paid back by around £100 per month, which last year was fine. This year, now, I need as much of it upfront as I am purchasing a new house.

Is there ANY way I can call them and say "hey, I'm getting a big wack this month but it's a one off so stay calm and tax me at 20% please, if I go over the threshold at the END of the year you can get more then".

Any advice greatly appreciated, I literally have a few days to change something if possible.

Due to anonymity and for open-ness, we are talking about a basic salary of £33,000 per annum (£2750PCM) and a bonus of £5650. I get a further bonus in the last month of the tax year at £3000, but thats fine.

Thanks so much.

Lokolo

No I do not believe so, as this is how PAYE tax system works.

Yes it's a pain, but it's how things are done

ceeforcat

I would not bother as you have saved considerably on NIC. You pay this at 11% on up to roughly £3650 of your monthly salary and 1% thereafter. This means that, by receiving your bonus in May in one month £2750 will be at 1% rate. If it were spread over a few months, you would pay an additional £275 in NIC - and you will not get it back!

Unless you are a director, of course........

Robertos

Thank you for your advice. It ended as £2511 in paye and £398 in NI.

I'm sure I get value for money on my £2511..... not!