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Year-end Bonus
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rjessy
Posts: 5 Forumite
in Cutting tax
Hi all,
I have just received a yearly bonus added in to my March pay. This has within the month pushed my PAYE in to the 40% bracket. I understand the basic operation of the system to auto correct over the year based on my pay code. As this is the last payslip of the year how do I go about getting the over tax back?
Thanks in advance for any advice.
I have just received a yearly bonus added in to my March pay. This has within the month pushed my PAYE in to the 40% bracket. I understand the basic operation of the system to auto correct over the year based on my pay code. As this is the last payslip of the year how do I go about getting the over tax back?
Thanks in advance for any advice.
0
Comments
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if the bonus was paid via your normal PAYE system then the tax is probably correct
why do you think it's wrong?
if you want to post up the figures we can check them for you.
we would need
total pay for year (after any pension deductions)
total tax for year
tax code0 -
As this is the last payslip of the year how do I go about getting the over tax back?
As it's the last payslip of the tax year and assuming you are on a cumulative tax code, the tax taken would be correct and no refund would be due.
However as Clapton says, give figures and we can be sure.0 -
Thanks both for replying.
My gross salary for the year is well within the 20% bracket so I assumed charging me 40% in the month was therefore always going to need correcting across the year to balance the effective tax %.
total pay for year (after any pension deductions)
=21,963.39 (No pension paid in to but I do pay in to a company share scheme @ 6% of gross pay and also student loan)
total tax for year
=2534.40
tax code
=810L - Until September this was incorrectly 793L (HMRC had attributed a tax code to an old job that I never received a P45 for. This is now on BR)
If you need other information let me know.0 -
Thanks both for replying.
My gross salary for the year is well within the 20% bracket so I assumed charging me 40% in the month was therefore always going to need correcting across the year to balance the effective tax %.
This is the year end though so you may not have been charged any 40% tax. What was your pay and tax for this month alone?total pay for year (after any pension deductions)
=21,963.39 (No pension paid in to but I do pay in to a company share scheme @ 6% of gross pay and also student loan)
total tax for year
=2534.40
I would make the tax due on that as £2504.68.tax code
=810L - Until September this was incorrectly 793L (HMRC had attributed a tax code to an old job that I never received a P45 for. This is now on BR)
If you need other information let me know.
Was there a Mth1 or a 1 after the tax code?0 -
how much was the bonus?
is it eligible for the share save scheme?0 -
The monthly gross for pay and bonus was £4100, deductions came to £1400 approx. The share contribution was only on the monthly pay portion. Ie around £1866. The bonus was £22260
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well I know nothing about the sharesave scehme but I am assuming that this is tax deductable
so the calculation is gross pay 21,963
sharesave elegible money = 21,963 - 2226 = 19,737
so deduction is 6% of 19,737 = 1184
so taxable pay 21,963 - 1184 = 20,778
less tax free allowance 8105
so tax is 20% of (20,788 -8105 ) = 20% of 12,673 = 2,534
which seems about correct.0 -
Thank you all for the information. The system is clearly cleverer than I am!0
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