Assistance in taxation on annual bonus

LW7

Hi all,
I have posted this in my debt free thread, but felt it may gain more exposure here. Please remove if this is deemed duplication.

Can someone assist me please to check these numbers.

My current salary is £2639.38 per month gross

Between deductions for my pension, company car, various health insurances and what not, I come out with £2414.45 NET, which is then subject to Tax of £385 and NI of £203, plus a deduction of £50 for a sharesave scheme, so deductions of £638 meaning my net take home pay is £1,774.

For this payday (March), I received by annual bonus of £2,300, which meant my total gross pay will be £4,712.45. My tax is then shown as £1,065 and NI as £424 with the £50 sharesave Scheme, meaning my total deductions are £1,539 leaving my NET pay of £3,172.

My taxcode is showing as 583L M1. 

Can anyone have a look at those figures and let me know if that looks right, or have I paid too much Tax & NI? 

As I'm working it out as I've paid £901 more tax and NI this month due to the £2,300 bonus which is c 40% tax & NI, which means they've taken it at the higher tax rate, as it should be 20%.

TIA. 

ceh209

As it's the last payment of the tax year (I'm assuming you don't get paid again before 5th April), can you post the cumulative figures from your payslip and we can check that way?

Although, I would say, the issue seems to be you are on a non-cumulative tax code (hence the M1). Do you know of any reason for that, have you changed jobs in the year, second job, anything like that?

LW7

ceh209 said:

As it's the last payment of the tax year (I'm assuming you don't get paid again before 5th April), can you post the cumulative figures from your payslip and we can check that way?

Although, I would say, the issue seems to be you are on a non-cumulative tax code (hence the M1). Do you know of any reason for that, have you changed jobs in the year, second job, anything like that?

Thanks for that, this is my final paycheck from this job for this financial year.

Tax year totals to date from this payslip show:

Taxable Pay £31414.22
Gross Pay: £31694
NI paid: £2679
Tax Paid : £5273
Pension contribution outside of salary exchange: £2553
Pension contribution company: £4434.12

As I mentioned I have company car which I know BIK is calculated on, so I pay tax on that I believe although don't know how much exactly plus I pay it on a couple of the life insurance policies which form my 2018/2019 P11D shows £5,742.99 as a P11D benefit.

I do also have a second job, which I've had for around 4 months, the most I've earnt from that is £150 in a month.

Thank you.

ceh209

LW7 said:

Tax year totals to date from this payslip show:

Taxable Pay £31414.22
Gross Pay: £31694
NI paid: £2679
Tax Paid : £5273
Pension contribution outside of salary exchange: £2553
Pension contribution company: £4434.12

As I mentioned I have company car which I know BIK is calculated on, so I pay tax on that I believe although don't know how much exactly plus I pay it on a couple of the life insurance policies which form my 2018/2019 P11D shows £5,742.99 as a P11D benefit.

I do also have a second job, which I've had for around 4 months, the most I've earnt from that is £150 in a month.

Based on the tax code being correct (which is a big assumption), you've overpaid tax by about £158.
NI is likely to be correct as it is calculated per pay period anyway, it certainly looks ok for March.

However, you need to check what tax if any you've paid on your second job and what the P11D value of your company car is, any other income etc before you can say for certain if you've overpaid or not.

If it's not already, I would suggest getting your tax code for your second job to be BR, that way it will always gets taxed at 20%

LW7

ceh209 said:

LW7 said:

Tax year totals to date from this payslip show:

Taxable Pay £31414.22
Gross Pay: £31694
NI paid: £2679
Tax Paid : £5273
Pension contribution outside of salary exchange: £2553
Pension contribution company: £4434.12

As I mentioned I have company car which I know BIK is calculated on, so I pay tax on that I believe although don't know how much exactly plus I pay it on a couple of the life insurance policies which form my 2018/2019 P11D shows £5,742.99 as a P11D benefit.

I do also have a second job, which I've had for around 4 months, the most I've earnt from that is £150 in a month.

Based on the tax code being correct (which is a big assumption), you've overpaid tax by about £158.
NI is likely to be correct as it is calculated per pay period anyway, it certainly looks ok for March.

However, you need to check what tax if any you've paid on your second job and what the P11D value of your company car is, any other income etc before you can say for certain if you've overpaid or not.

If it's not already, I would suggest getting your tax code for your second job to be BR, that way it will always gets taxed at 20%

Excellent - thank you for that. I shall await update of by P11D, and I think the tax rates for company cars is changing in 2020/2021 again (going up!) so I will no doubt pay more tax on that also. 

The portal used for my second job is terrible and I've not been able to access any payslips since I started, so have no idea what I have been taxed on those wages as of yet. So will look into that straight away and confirm the tax code for the second job.

Thank you for your help.