How much tax should I be paying on my a Bonus?

kylel39

Hello Guys,

I was hoping someone could help with the following issue;

To cut a long story short I was earning a salary of £12,500 p.a, my boss realised this was well below the going rate etc. so has decided to reimburse me via bonus's and increase my wage as of the end of the tax year in April. I usually receive £1038.50 gross and then £903.12 net after tax & NI. For the next 2 pays I will be receiving £2500 bonus's on top of this. So gross pay will be £3538.50 for the next 2 payslips.

I was just wondering how much I can expect to be left with in hand as such? How much Tax & NI can I expect to be taken off me. My Tax Code is 647L. If it effects anything I also received a bonus in December of £1000 also. Of the £2038.50 gross I received about £1580.

Any help would be greatly appreciated. Just seems odd that when you get a bonus the percentage taken off is nearly doubled, I'm assuming this is correct!?

Thanks,
Kyle

CLAPTON

on the bonus element you will pay 20% tax and 12% NI
so an extra 2,500 will be taxed at 500 and NI of 300


it is fairly unlikely that your taxcode is 647L; maybe check your last payslip

kylel39

CLAPTON wrote: »

on the bonus element you will pay 20% tax and 12% NI
so an extra 2,500 will be taxed at 500 and NI of 300


it is fairly unlikely that your taxcode is 647L; maybe check your last payslip

Hello,

Thanks very much for the information.

It's certainly down as 647L but don't know if this is correct or not. A quick glance shows all the office staff are down as 647L and the site staff 747L. Possibly due to us being counted as overheads or something!? What difference would this make if you don't mind me asking!?

CLAPTON

the normal tax code for this tax year 2011-12 is 747L which means that you have a tax free allowance of 7475 per annum

last year the equivalent code was 647L

with the wrong code you will pay too much tax

what exactly does your payslip show?

zygurat789

kylel39 wrote: »

Hello,

Thanks very much for the information.

It's certainly down as 647L but don't know if this is correct or not. A quick glance shows all the office staff are down as 647L and the site staff 747L. Possibly due to us being counted as overheads or something!? What difference would this make if you don't mind me asking!?

Sounds as if someone hasn't done the annual update on your department. Looking on the bright side you could all be in for a bit of a tax refund in the order of £160.

xylophone

Your tax code certainly needs checking - suggest you contact payroll/HMRC. Note that the personal allowance increases in April.
http://www.hmrc.gov.uk/rates/it.htm