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    • baled
    • By baled 17th Jun 17, 8:32 PM
    • 20Posts
    • 1Thanks
    Possible tax and NI deduction on bonus payment
    • #1
    • 17th Jun 17, 8:32 PM
    Possible tax and NI deduction on bonus payment 17th Jun 17 at 8:32 PM

    The company I've been temping at for the last 5 years is closing our site August 31st and our department is relocating outside of the UK.

    As I'm not entitled to severance pay, HR have very generously offered to pay me an equivalent bonus instead totalling 9k.

    I've been reading some previous posts trying to figure out what tax and NI would be deducted roughly but I'm still unsure.

    My tax code is 1150L
    I'm paid weekly through my agency.
    My gross pay to date is 4740.72 up to 9th June (basic weekly gross is 376.29 but I work some overtime some weeks)

    If the 9k is paid in September can anyone give me a rough figure for tax and NI deductions please?

    Also, if I'm owed any tax adjustment/refund afterwards how does that work if I don't find another job immediately and have to sign on?

Page 1
    • Dazed and confused
    • By Dazed and confused 17th Jun 17, 10:36 PM
    • 2,557 Posts
    • 1,226 Thanks
    Dazed and confused
    • #2
    • 17th Jun 17, 10:36 PM
    • #2
    • 17th Jun 17, 10:36 PM
    9th June is in week 10 of the tax year so you're currently earning around 24.5k so even with the 9k you will be well short of the 40% limit but because the payment is being made half way through the year it will initially make your income look much greater than it will be in reality.

    However by mid September you could just about be far enough into the tax year that even with the 9000 you will probably only pay 20% tax on the whole of the 9000, so 1800.

    Any potential refund would depend on what happens next, if you earn over 221/week there won't be any refund due.

    If you are out of work for a bit them find new employment any refund due will be made by your new employer the first time they pay you (providing you give them your P45 which you should get from your current employer).

    If you sign on for jobseekers then just make sure you give DWP your P45 and they will give you any tax refund due when you sign off jobseekers (or at the end of the tax year if you are still signing on then).

    NI will be 12% on some of the 9000 and then 2% on some, possibly none due on some as well but you're best of checking the calculator on, just use an average weeks taxable pay first to see normal NI then add the 9000 to the normal pay and recalculate to see the extra NI due on the 9000.
    • baled
    • By baled 18th Jun 17, 8:01 AM
    • 20 Posts
    • 1 Thanks
    • #3
    • 18th Jun 17, 8:01 AM
    • #3
    • 18th Jun 17, 8:01 AM
    Thanks Dazed!
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