PAYE over payment

Cupcake24

Hi I have just received abonus from my company in my salary this month and have paid a whopping £10,500 tax on this!

I usually have an annual salary of £41,000 -£45,000 so but this month i have also been paid a large bonus of £25,000. This is a 1 off payment and I will never see this again. From the tax calculators I've been looking at on a salary of £67,000 I will pay tax to the amount of approx£16,000 for the whole of the 2015/16 tax year and as at the end of July I will have already paid £12,000 of this.

So my question is will I pay the remainder of my tax approx £4000 over the remaining months to April 2016 or can I request a tax rebate on this large lump sum?

PasturesNew

Yes, you'll find you don't pay any tax as you've "overpaid" for the next X months until the amount you've paid equals what you should've paid. Then it'll revert to the figure you're used to seeing.

Cupcake24

Thanks -am I able to request a tax refund for the over payment & then continue to pay my usual rate each month

mad_mam_of2

As long as your Tax Code doesn't have an x, or wk1 mnth1 or non cumulative after it(sometimes referred to as an emergency code), you will get the refund automatically via your wages. If your Tax Code is loke this you will need to speak to the helpline and have your latest payslip to hand

Cupcake24

Thanks my tax code ends in L so it should be automatically refunded but I think I may need to speak to the tax office to request a refund as I will also be starting a new job next week as well!

molerat

Highly unlikely they will give you a refund unless you are ceasing employment. When you give your P45 to the new employer they carry everything forward and it will get corrected over the coming months. One of the few government systems that actually works.

chrisbur

I think that you need to give a bit more detail before anyone can give you a reliable answer on this. If you are on the usual tax code 1060L then on the figures you have given it would seem likely that you are hovering around the start of the 40% tax band without the bonus which would mean all the bonus could well be taxed at 40%. This would mean that there would be little or possibly even no tax adjustment to be made.
To get a better idea you need to give from the payslip that includes the bonus the total taxable gross, tax paid, tax code, the month number or date of payment and most importantly the taxable pay to date and tax paid to date.

purdyoaten

chrisbur wrote: »

I think that you need to give a bit more detail before anyone can give you a reliable answer on this. If you are on the usual tax code 1060L then on the figures you have given it would seem likely that you are hovering around the start of the 40% tax band without the bonus which would mean all the bonus could well be taxed at 40%. This would mean that there would be little or possibly even no tax adjustment to be made.
To get a better idea you need to give from the payslip that includes the bonus the total taxable gross, tax paid, tax code, the month number or date of payment and most importantly the taxable pay to date and tax paid to date.

Absolutely - 40% of £25000 is £10000. Any real salary increase in new job will mean that no refund is payable. We don't know the op pension contributions though. We need to know new salary.