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One off bonus tax is high
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bigash87
Posts: 13 Forumite
in Cutting tax
Hi all,
I am a bit confused about why tax would be different on my bonus to my regular salary. I earn 30k p/a and don't usually get bonuses. But this year I have us 2 on two separate occasions.
The first at the end of April was £1000 but I only received £680.
The second this month was £650 but I only received £442 after tax.
It appears the bonuses are incurring 32% tax but my main salary is around 21%-22%
Is this correct?
Should I expect to receive the difference back next April?
Thanks
Ash
I am a bit confused about why tax would be different on my bonus to my regular salary. I earn 30k p/a and don't usually get bonuses. But this year I have us 2 on two separate occasions.
The first at the end of April was £1000 but I only received £680.
The second this month was £650 but I only received £442 after tax.
It appears the bonuses are incurring 32% tax but my main salary is around 21%-22%
Is this correct?
Should I expect to receive the difference back next April?
Thanks
Ash
0
Comments
-
You don't pay 21-22% on your main salary. You're forgetting about your £11k tax free allowance that you've already used, and national insurance. Anything over the £11k is taxed at 20%, plus NI of 12%, so you should pay 32% on any bonus, which you have. All looks correct to me
Brighty0 -
Agree with Brighty, your salary already used your tax and NI allowances. The amounts you are receiving are still within the basic rate so 20% tax and 12% NIC.0
-
Yes true, I had forgotten about tax free allowance.
Thanks for your help0
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