We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Year-end Bonus

Options
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.

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    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 code
  • jem16
    jem16 Posts: 19,584 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    rjessy wrote: »
    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.
  • rjessy
    rjessy Posts: 5 Forumite
    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.
  • jem16
    jem16 Posts: 19,584 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    rjessy wrote: »
    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?
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    how much was the bonus?
    is it eligible for the share save scheme?
  • rjessy
    rjessy Posts: 5 Forumite
    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 £2226
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    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.
  • rjessy
    rjessy Posts: 5 Forumite
    Thank you all for the information. The system is clearly cleverer than I am!
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.