Bonus after I left the company

Sintara

Hi

Hoping this is a straight forward answer (if thats possible where tax is concerned!)...

I left a company in July and was told I would be paid a 10% bonus. They have then faffed around and tried to refuse paying it etc etc. They have now agreed to pay. Since I left them I have gone on to a new job. Does anyone know if I will therefore pay emergency tax on the bonus or if it will be at my usual 20% tax level?

Thanks!

Darksparkle

An 0T tax code should be used which is a temporary tax code.

The amount of tax you pay will depend on how much the payment is.

Nicola_Ed

OT menas you do not get any personal allowances when the code is used.

Sintara

Thanks, I assumed it would be OT code. I'll just have to check at the end of the year and ask for a refund then. Thanks for answering

chrisbur

Sintara wrote: »

Thanks, I assumed it would be OT code. I'll just have to check at the end of the year and ask for a refund then. Thanks for answering

An 0T tax code used for a payment after the issue of a P45 does not mean that you will always be under-taxed, often the tax is correct and sometimes it can result in being under-taxed.