tax on bonus!?

GGLLOYD

maninthestreet wrote: »

£1250 per month = £15000 p.a. + £1250 bonus = £16250
This is nowhere near £35000 p.a.

See my post above.

Judith_W

So in case this isn't clear...
Monthly pay you get taxed less than 20% each month because the personal allowance is reducing the amount that is taxed.
Your bonus is all taxed (for you) at 20%

Simple surely?

Sambucus_Nigra

cord123 wrote: »

Hi all!
(sorry in advance if this is a silly question!)
I got my bonus today of £1250 :j I usually earn £1250 on a monthly basis, taking home about £1046 after tax...

this pay day I got £1882... why did I get taxed so much? Is this an ermergency tax that I will get back next month? Do I need to ring th tax office? I would rather have it back as one big sum rather than spread out over a few months.....

Thanks in advance!

You got taxed so much as your monthly personal allowance comes tax free, and the rest is ALL taxed - which means that all your bonus is taxable. You will not get this back.

paddedjohn

OP, TO SIMPLIFY THINGS, THE FIRST £622.50p YOU EARN EACH MONTH IS TAX FREE, ANYTHING YOU EARN OVER THIS BE IT NORMAL WAGES, OVERTIME OR BONUS PAYMENT IS TAXABLE AT 20%. (BASIC RATE TAX PAYER)

SarEl

GGLLOYD wrote: »

Don't people read? Sorry to sound blunt, but I said - "You have only been taxed at 20% on your earnings. You'd step into the 40% tax bracket on anything over £2916.66/month or £35,000 per annum."

Yes, people do read. But since - and this is the second thread you have done this on - this is wrong there really isn't much point in reading it, is there? For a payroll administartor you seem to be singlarly unaware of how tax works. Earnings of over £35k do not attract 40% taxation.

cord123

thanks for your help everyone! The penny has dropped :-)

SandC

I always try to work it out when I know I've got a bonus coming but before I get my payslip that tells me exactly how much I take home - just deduct 30% off the bonus amount and that will give me around what I will have on top of my normal pay.

This covers tax and NI.