Receiving a bonus in pay packet on PayE (Into Super Tax Bracket) can i claim back tax?

Linton

ScottyB210 wrote: »

So in Septemeber will i get taxed 40% of that pay packet in total instead of 20% that’s why i end up with 10k which people usally get instead of the instead of 12k (which would be 20% off 15,000)

The PAYE tax system is not very clever at dealing with one-off payments. The net effect is that in the month of the one-off payment you will be taxed as if you were going to receive that amount of bonus every month until the end of the tax year which in your case would put you well into the 40% band. But in the following months when you dont get the bonus the system will steadily reduce your tax eventually paying back the whole of the excess by the end of the tax year.


Exactly how this will work out in the month of the bonus is difficult to say - it would require details of your tax code, salary to date, and tax to date.


To answer your last question - you only pay 0% tax on the income below your annual allowance, 20% tax on the remainder up to the top of the basic rate band, and then 40% tax on the rest. So by the end of the year you probably wont have paid any 40% tax.

molerat

Back of a fag packet calculation :
On a £30K salary you will currently be paying around £300 tax per month. If you get paid £18K (£15K bonus + £2.5K pay + £500 back pay + £200 )in Sep you will pay around £5K in tax but in Oct - Feb you will only pay around £60 per month and around [STRIKE]£160[/STRIKE]£120 in Mar recouping that overpaid tax. As your total pay for the year will be only just over [STRIKE]under £45[/STRIKE]£46K you [STRIKE]will[/STRIKE] should not be due any 40% tax.


As for NI, between £702 and £3683 per month you pay 12%. Above that you pay 2%. If your bonus was split across several months you would be exposing a large proportion of it to an extra 10% deduction.

[Deleted User]

molerat wrote: »

Back of a fag packet calculation :
On a £30K salary you will currently be paying around £300 tax per month. If you get paid £18K (£15K bonus + £2.5K pay + £500 back pay )in Sep you will pay around £5K in tax but in Oct - Feb you will only pay around £60 per month and around £160 in Mar recouping that overpaid tax. As your total pay for the year will be just under £45K you will not be due any 40% tax.


.

Hmmm - I don't get that. (probably because I don't smoke

OP will have a salary of £30870 (£30000 with 2.9% increase backdated)
He has a bonus of £15000
He has additional pay of £200 (for going away)
That comes to £46070 and, hence, the question on pension contributions.

BakingC

I only mentioned the filling out the tax return as OP has stated they do this anyway as their house is rented out. Of course HMRC should sort it through PAYE but my worst case of it isn't sorted then it will reduce their additional tax liability for their other income.

molerat

[Deleted User] wrote:

Hmmm - I don't get that. (probably because I don't smoke

OP will have a salary of £30870 (£30000 with 2.9% increase backdated)
He has a bonus of £15000
He has additional pay of £200 (for going away)
That comes to £46070 and, hence, the question on pension contributions.

I meant to put just under £46K and missed the £200 but the basic figures stand and, assuming standard tax code, is likely still just under 40% tax or subject to exact figures may just bob over. Unless paying some voluntary / personal pension contributions there is no pension deduction.

ScottyB210

molerat wrote: »

Back of a fag packet calculation :
On a £30K salary you will currently be paying around £300 tax per month. If you get paid £18K (£15K bonus + £2.5K pay + £500 back pay + £200 )in Sep you will pay around £5K in tax but in Oct - Feb you will only pay around £60 per month and around [STRIKE]£160[/STRIKE]£120 in Mar recouping that overpaid tax. As your total pay for the year will be only just over [STRIKE]under £45[/STRIKE]£46K you [STRIKE]will[/STRIKE] should not be due any 40% tax.


As for NI, between £702 and £3683 per month you pay 12%. Above that you pay 2%. If your bonus was split across several months you would be exposing a large proportion of it to an extra 10% deduction.

Your fag packet totals look pretty good the only thing is i recieve £180 each month para pay and ive been over seas for at least half this year if not more and that’s me gettings lsa and loa of about maybe £600 extra a month on average . So i suspect i will be over the 45k mark easily will my 30k annual wage plus £180 pm , plus around £600 pm for being away constantly and a 2.9% increase so around a one off payment of £400ish maybe? If im over the 45k mark will i not recieve all the tax back for the next couple of months until april? Will i then end up owing money because ive earned so much that year? Thanks again for all the replys people 👍🏻👍🏻

molerat

That puts a different view on the overall picture. A lot depends on which of those extras are taxable. It looks like you could be well into the 40% tax bracket this year but will get a reduced tax take per month for the rest of the year to compensate for the large bite in Sep. PAYE will sort it as you go along so by year end you are square but anything taxable that you get from outside may leave you with a bill on your SA.

chrisbur

ScottyB210 wrote: »

So what your saying is to take the big bonus in the same month as i am getting other extra money (normal pay but a couple of hundered higher) plus my backpay for the payrise . So all 3 things including my normal wage would be better in one pay check rather than waiting for a low income month to cliam the 15k bonus?

Yes this will result in you paying less NI than if these payments fell into different pay periods.

Regarding the tax you need to give full details for anyone to say if 40% tax will be paid; and if it is payable the only way to reduce it is by paying into a pension, re-arranging when things are paid will have no affect.

[Deleted User]

molerat wrote: »

I meant to put just under £46K and missed the £200 but the basic figures stand and, assuming standard tax code, is likely still just under 40% tax or subject to exact figures may just bob over. Unless paying some voluntary / personal pension contributions there is no pension deduction.

Yes - I thought that you did - no criticism intended. The figures are close!

sheramber

ScottyB210 wrote: »

So what your saying is to take the big bonus in the same month as i am getting other extra money (normal pay but a couple of hundered higher) plus my backpay for the payrise . So all 3 things including my normal wage would be better in one pay check rather than waiting for a low income month to cliam the 15k bonus?

Ah right so what everyone is saying is i won’t get super taxed i will just get highly taxed that month and i will get the 5kish tax back off the 15k over the next few months until April? Will i end up getting the full 15k in the end in then? Thank you for all the replys everyone I appreciate it , no one around here who’s job it is to advise us on this stuff seems to have a clue

Ah right so what everyone is saying is i won’t get super taxed i will just get highly taxed that month and i will get the 5kish tax back off the 15k over the next few months until April? Will i end up getting the full 15k in the end in then?

]You won't get all the tax deducted from the bonus back as you will pay at least 20% tax on it if you are not liable to pay tax on any of it at 40%