Bonus Tax

jammy1000

Hi all,

I have received a bonus at work, for the first quarter that I have had the job for, and I seemed to have been taxed a huge amount.

My pre tax wage and bonus come to around £4250, but of this, only £1666 is my wage. Now I have been paid, it seems that I have had around £1500 taken from me in Tax, NI and Student loans. I know the bonus will obviously be taxed, but I am confused at how much it should be.
As I earn 20k a year, I know I won't be into the second tax band, and I have only been working 6 months!

Is there something I need to do, like apply for a tax rebate, wait until the next tax year to do it, or will it be sorted onto my future pay cheques?

Any help is much appreciated!

Thanks,

James

spadoosh

Have you got dates,

Start of employment, bonus recieved, previous employment for this tax year. (April)

O and is the 20k inclusive of bonus?!

jammy1000

I started work at my current Job on the 11th July. Until the 11th Oct I was on 18k a year, and since then it has changed to 20k.
The bonus I received was £2600. Since April, other than my earnings in this job, I have only had one part time job which I took home less than £1500. (I don't have the exact figure.)

The Bonus is on top of the 20k.

chrisbur

Looks to me as if you might be on a month 1 tax code, but cannot be sure as you have not given your code. Can you advise tax code, tax basis (usually shows after code as something like M1 month 1 non-cumulative X) amount of tax paid this time and to date gross to date.

jammy1000

My Tax codes is 747L (W1/M1). This probably means more to other people than it does to me! Up to this pay cheque, I have paid a total of £858.60.
I haven't got the current figures as I am waiting to get my pay cheque back from the accounts department.

I really appreciate all the help, thankyou.

Lovelyjoolz

You are being taxed on an emergency tax code. When you started your job did you give them a P45? Your new employer will be using the same tax code as your P45. If it was incorrect on there, you may have paid too much tax in your previous job.

Your best bet is to contact HMRC and tell them you are on an emergency tax code. They should send you a new tax code notification. Once your employer applies this new code to your payroll, you should see a rebate in your next payslip.

jammy1000

When I started, I was waiting for my P45 to come from my previous employer. They told me in the meantime to fill in a P46. I'm sure I did give them my P45 as well. Is it easy to find out my new tax code? I now have a full month before the next time I get paid, so should be able to find it in time.
Will the rebate happen automatically once the code is applied, not something I need to claim for at the end of the Financial year?

Thankyou for your help. It was a bit of a shock this morning to see how much had been taken!

chrisbur

jammy1000 wrote: »

When I started, I was waiting for my P45 to come from my previous employer. They told me in the meantime to fill in a P46. I'm sure I did give them my P45 as well. Is it easy to find out my new tax code? I now have a full month before the next time I get paid, so should be able to find it in time.
Will the rebate happen automatically once the code is applied, not something I need to claim for at the end of the Financial year?

Thankyou for your help. It was a bit of a shock this morning to see how much had been taken!

Check your P45 Part 1A that you kept to see if this was a week1/month1 code (it will have an X after the tax code and figures will only appear in section 8) if it was then your employer can do nothing untill they hear from the tax office. All you could do is contact the tax office to try and speed up the process. If your P45 was not a week1/month1 basis (no X and figures in section 7 and possibly 8 as well) then contact your payroll dept. to see why it has not been used.