Help understanding Bonus Tax Impact

dh058977

Hi All,

Hoping someone can help me understand my bonus position, if I have paid too much tax and how this will be paid back ...

Salary - £38530
Tax Code - 1257L
Student Loan Plan 1
Pension - 5%

£35 salary sacrifice to charity each month

Bonus paid in April - £9144.91.
I assume as its the first month of the year I will have paid 40% on some of the bonus but just trying to work out if / how this will come back to me.

Thanks in advance.

[Deleted User]

It will come back in parts until your average taxable salary extrapolates to less than 50270 for the year. I calculate that this will happen in November, month 8.of the tax year. At that point your taxable salary will be just over 24000 plus the bonus of 9141 making a total of 33141. That averages out at 4142 per month or 49704 per annum.

(Student Loans - no clue about the various plans)

dh058977

[Deleted User] said:

It will come back in parts until your average taxable salary extrapolates to less than 50270 for the year. I calculate that this will happen in November, month 8.of the tax year. At that point your taxable salary will be just over 24000 plus the bonus of 9141 making a total of 33141. That averages out at 4142 per month or 49704 per annum.

(Student Loans - no clue about the various plans)

Thanks for this, very helpful! Is there anyway of working our roughly what the 'part' coming back to me will be each month until November? I tried working it out for myself but failed!

It has no impact on anything but we are currently remortgaging so I'd love to update my spreadsheet for my own records.

Thanks again

Dazed_and_C0nfused

You can use this simple calculator.

You enter some basic details from from one payslip then add in a couple of bits from your forthcoming payslip to see what the tax due will be.

http://payecalculator.hmrc.gov.uk/PAYE0.aspx

dh058977

Dazed_and_C0nfused said:

You can use this simple calculator.

You enter some basic details from from one payslip then add in a couple of bits from your forthcoming payslip to see what the tax due will be.

http://payecalculator.hmrc.gov.uk/PAYE0.aspx

Thanks but, either that didn't work correctly or I don't understand the output... I think it's the latter! I guess I will just have to wait for my payslip at the end of the month to see if anything comes back to me this month or not. Thanks

Dazed_and_C0nfused

If you enter the details for April payslip without the bonus you will see the normal tax you would have paid (A)

Then enter the details with the bonus and that should mirror your April payslip (B)

Then move things on a month and add your expected taxable pay for May to the figures from your April payslip (C).

The tax due at (C) will be less than (A) because your average annual earnings have reduced.

dh058977

Dazed_and_C0nfused said:

If you enter the details for April payslip without the bonus you will see the normal tax you would have paid (A)

Then enter the details with the bonus and that should mirror your April payslip (B)

Then move things on a month and add your expected taxable pay for May to the figures from your April payslip (C).

The tax due at (C) will be less than (A) because your average annual earnings have reduced.

Thanks,

My 'Tax due at end of current period' for April would have been 432.60 but I paid 3894.86, May it says 236.87 so does that mean around 195 will come back to me in May?

Dazed_and_C0nfused

Your take home pay will be £195 than April.

And possibly he same will occur in some more months.