Tax code - Deductions

Neeko1988

Hi Everybody

Loooking for some advice if possible please?

I started a new job in June with a company car, last month I had a letter from the HMRC to say I owed £699 in tax for under payment of car tax. They stated they were to alter my tax code to take £100 per month until April and then £29 a month for the next year.

This is fine however I am due a large bonus in my pay the end of March. Will the above code change have any effect on how much I would be taxed on the bonus?

For the record I am currently earning £40k per annum. I am just worried I’ll be taxed 40% on my bonus or something.

Thanks in advance

Chris

Dazed_and_confused

Is your tax code being used on a non cumulative basis?

500L is cumulative
500LX is typical of non cumulative

Neeko1988

Dazed_and_confused wrote: »

Is your tax code being used on a non cumulative basis?

500L is cumulative
500LX is typical of non cumulative

The tax code they have changed me too to collect the money owed is K10X

Dazed_and_confused

Ok, that means each months pay is looked at on its own and what happened in previous month's is irrelevant.

If you Google gov.uk manual payroll calculation there is a link to a calculator where you can check how much tax would be deducted. You have to know your taxable pay for the month, tax code and pay date. You have to also tick a box to say the code is being used on a week 1/month 1 basis (another phrase for non cumulative).