Bonus Tax Help!

CamGirl22

Hi,

After a little advice!

In last month (March 2013) I received an annual bonus of £3,100, which was nice! However, as usual the tax man took a big chunk of it, but I noticed that due to the amount being paid to me that month (£5,259), I paid 40% tax on a portion on it.

As this is my last payslip of the financial year, I can see my taxable earnings are only £28k which means I shouldn't be paying 40% tax on any earnings I think.

Does this mean I can apply for a rebate?

Thanks in advance for any help! Tax is not my strong point :undecided

CLAPTON

what are the numbers?

total earning to date
total tax to date
tax code
pension payments

as a start

CamGirl22

Total earnings £27,706.30
Tax: £4,421.72
NI Tax: £2,193.14
Tax Code: 774L M1

No pension payments but I do have private medical cover as a benefit.

CLAPTON

the tax expected with a taxcode of 774L would be 3993

the problem is the that you have a M1 after your tax code which means you over paid as your final month was taxed on it's own.

do you know why you had 774L M1
have you recently changed jobs/


what is the current year tax code (i.e. 2013-14)?

CamGirl22

I have no idea why I have M1 on there but I checked my payslip for last month and it's the same code.

I haven't changed jobs, been here for a couple of years but I did get a significant payrise late last year?

The year for this one is 2012-2013, it has pay period 12 on my payslip.

CLAPTON

you need to contact HMRC and ask why you are on an M1 code

also worth checking your tax for the previous year

and check your tax code for this (new) year

an increase in salary shouldn't make any difference

CamGirl22

Ok I will give them a call. Thank you for all your help!