Bonus - Tax question

Jordy456

Hello All,
Quick question I am due a bonus next month of around 6500£ ontop of my monthly salary so my total monthly payment will be just over 10k and figure I will get after tax is £7850 ish.
Salary Calculator says this "You might find that about an extra £1,559.50 of income tax than indicated is actually deducted from your bonus payslip. This is because your earnings in this pay period put you over the income tax threshold for the month, but not for the year. Normally, this "extra tax" is refunded in subsequent payslips."

Can someone let me know exactly how this tax refund of £1560 works? Do I have to claim it or?

Thanks

Dazed_and_C0nfused

No, all it means is that by your next payday you might be earning at a rate of say £60k/year so some higher rate tax is deducted that month.

Then in future months (when there is no bonus) you will only be earning at a rate of say £58k, then £56k and so you will pay less tax in future months, there isn't an actual refund as such.

You can use this calculator to see exactly what will happen (assuming stable pay in future pay periods).

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