Over tax on bonus (non cumulative)

Craig_Charles

Hi Guys

Wondered if anyone can give me some advice...

I earn a basic of around £22000 per annum and every March
I get a bonus which is a share of the companies profits.

I also have a loan from my employer so my tax code at the moment is 433L and will reduce further in April.

I received my bonus this month however I seem to have been taxed around £300 more than I was expecting I was multiplying the gross figure by 0.77 as my deductions (NI & Tax) are normally 23%. My bonus this month is £2500 but I have been taxed 30%????

I spoke to my payroll dept and they said this was because I am on a non cumulative tax code???

It appears it has pushed me up a band as if I was earning this amount every month but this is a one off bonus so surely this should not put me in a new tax bracket???

My YTD figure on my March 2011 payslip is £23274 (including the bonus).

Will they adjust this and give me it back or do I have to query it with HMRC?? I am confused

Thanks

sujman

I am in a simiara situation and will be claiming the money back from the HMRC in the new financial year (sometime after April). Simply call your local tax office for advice.

CLAPTON

if you are in the normal 20% tax band then for every extra pound you earn you pay 20% tax and 11% NI i.e. about 31% is deducted
your average level of deduction includes the tax free allowance of 4335 so that will be lower than your marginal rate

Craig_Charles

I just rang them and I am so unbelievably confused. They said due to the loan from employer I have actually underpaid. I know that I do owe the revenue but was under the impression that these new tax codes I'd been given where so they could gradually take the amount back?? It's came as a shock that they have taken 30% tax in March but is that how it works? Do they collect anything you owe them for that year in March?

I said would that mean that I am taxed less to balance it out and she advised I would not be. If this is money that I owe the Revenue then it's fair enough, but she said at first that it's because it's pushed me into the 40% bracket, so how can I tell if I am being skanked?

I will have to submit my P60 I guess.

Thanks

Craig_Charles

CLAPTON wrote: »

if you are in the normal 20% tax band then for every extra pound you earn you pay 20% tax and 11% NI i.e. about 31% is deducted
your average level of deduction includes the tax free allowance of 4335 so that will be lower than your marginal rate

So it probably is right it's just I worked it out wrong?? DOH

CLAPTON

on an income of 23,274 and a taxcode of 433L then your total tax should be

23274-4339 = 18935 x 20% = 3787
what is your total tax this year?

Craig_Charles

CLAPTON wrote: »

on an income of 23,274 and a taxcode of 433L then your total tax should be

23274-4339 = 18935 x 20% = 3787
what is your total tax this year?

Tax £3,711.46
NI £1,866.99

The loan from my employer has really confused me trying to work it all out I think lol

CLAPTON

presumbaly the company loan is the reason why your tax code is 433L?

does your tax code have any letter numbers after it... like M1 or W1 or noncum?

Craig_Charles

CLAPTON wrote: »

presumbaly the company loan is the reason why your tax code is 433L?

does your tax code have any letter numbers after it... like M1 or W1 or noncum?

There are no other numbers after it or anything. Yes they wrote to me in November and made adjustments to my pay, since then I received approx £30 less each month in my pay. I presumed this would be the amount that added up to what I owed them.