Income tax question

natsplatnat

Hoping some wonderful peeps can shed some light on this for me?


I am salaried, paid weekly and therefore have the same tax, NI and student loan deductions each week.


I received a bonus in my Christmas week pay of £800.00 gross. This appears to have caused my tax, NI and student loan deductions to soar for that one week (eg, Tax usually £97, in this week £297). Is this because they assume that I am earning this amount every week even though I am not? In which case, would I be right in thinking I would be due a rebate back at the end of the tax year?


I know my bonus is money I didn't have, so I don't really miss the deductions - but I just think it is a bit steep! lol

AJ1982

PAYE is normally very good and this will settle out over the remainder of the year.

If not, wait for the P60 and get a refund from HMRC.

chrisbur

natsplatnat wrote: »

Hoping some wonderful peeps can shed some light on this for me?


I am salaried, paid weekly and therefore have the same tax, NI and student loan deductions each week.


I received a bonus in my Christmas week pay of £800.00 gross. This appears to have caused my tax, NI and student loan deductions to soar for that one week (eg, Tax usually £97, in this week £297). Is this because they assume that I am earning this amount every week even though I am not? In which case, would I be right in thinking I would be due a rebate back at the end of the tax year?


I know my bonus is money I didn't have, so I don't really miss the deductions - but I just think it is a bit steep! lol

The deductions will seem a bit high as you have to remember you get a band of earnings for each of these deductions on which no tax, NI or SL is taken but as these bands have been used up the extra deductions are taken on the full £800. But the figures you quote suggest that a bit more tax than might be expected ie £200 rather than £160 has been taken. There are reasons why this can happen but do need more details to see what is happening.
From your payslip with the bonus and the payslip before thia one would need Taxable gross, tax paid, NI paid, loan paid, tax code/basis, week number, taxable gross to date and tax paid to date.

natsplatnat

chrisbur wrote: »

The deductions will seem a bit high as you have to remember you get a band of earnings for each of these deductions on which no tax, NI or SL is taken but as these bands have been used up the extra deductions are taken on the full £800. But the figures you quote suggest that a bit more tax than might be expected ie £200 rather than £160 has been taken. There are reasons why this can happen but do need more details to see what is happening.
From your payslip with the bonus and the payslip before thia one would need Taxable gross, tax paid, NI paid, loan paid, tax code/basis, week number, taxable gross to date and tax paid to date.

I will get the details off my payslips tonight (at work at the mo!)


Thank you for all the comments so far!

Darksparkle

Providing you are on a cumulative tax code (so no X or W1 after it) then it will resolve itself by end of the year.

natsplatnat

Darksparkle wrote: »

Providing you are on a cumulative tax code (so no X or W1 after it) then it will resolve itself by end of the year.

Fantastic news - thanks! Tax year???

Darksparkle

natsplatnat wrote: »

Fantastic news - thanks! Tax year???

Yes tax is dealt with in the tax year.

chrisbur

Darksparkle wrote: »

Providing you are on a cumulative tax code (so no X or W1 after it) then it will resolve itself by end of the year.

There may be nothing to resolve, it is possible that the tax deducted is the correct amount, or it may be wrong, it might correct itself or it may need something doing to correct it, no-one knows. It is only by seeing the full figures from the payslips that anyone can tell exactly what is happening.

Savvy_Sue

natsplatnat wrote: »

Fantastic news - thanks! Tax year???

The tax year runs from 6th April one year to 5th April the following year.

We are currently in the 2015-2016 tax year, so there is time for your tax situation to resolve itself.