Tax on a bonus - HELP!

vicshippers

I have just been told that I am going to get a 10% gross pay bonus before xmas this year which will equal £2300....I don't know how to work out what I will actually get paid that month

I'm still paying back my student loan and when I put my details into listentotaxman.com all comes back correct to the penny (ie monthly salary of £1403) BUT with this bonus how do I use the calc?

If I just add it to my gross salary to make it £25300 then obviously the bonus is spread over the year (which it won't be) and if I add it to my monthly income then it presumes I'm getting a MUCH higher salary and so I've gone up a tax band...

Hopefully someone can understand my rambings! Help please!

CLAPTON

assuming your bonus of 2300 in added to your december salary then your take home pay for that month will be 2870 approx

vicshippers

CLAPTON wrote: »

assuming your bonus of 2300 in added to your december salary then your take home pay for that month will be 2870 approx

So of a £2300 bonus I get taxed/NI over £800? 33%????? Ouch...

That can't be right...my total gross income for that month will be £4216, which even on a higher tax band I would take home £2984, so I should take home more than £2984.

Or am I being too logical for the UK tax system?

CLAPTON

Marginal rates of
tax is 20%
NI is part at 11% and some at 1%
student loan costs you 9%

so it could have been worse

MRSTITTLEMOUSE

This happens to my husband with his annual bonus every year,he gets taxed about 1k too much from his pay that month.He always gets it back after the tax year end when he gets his p60(I think that's the right form) when the new tax year starts.

CLAPTON

MRSTITTLEMOUSE wrote: »

This happens to my husband with his annual bonus every year,he gets taxed about 1k too much from his pay that month.He always gets it back after the tax year end when he gets his p60(I think that's the right form) when the new tax year starts.

if the bonus is paid early in the tax year (say april / may) then one will often be overtaxed. The overtax will automatically be repaid the following months.

In this case however, the tax is correct and he will get no refund.

Mikeyorks

MRSTITTLEMOUSE wrote: »

he gets taxed about 1k too much from his pay that month.He always gets it back after the tax year end

That must be because the bonus is paid very late in the tax year (Feb / March?) ...... therefore the PAYE system doesn't have time to self-correct before the year ends?