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  • FIRST POST
    • Pippin89
    • By Pippin89 12th Mar 18, 11:57 AM
    • 1Posts
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    Pippin89
    Tax Calculation
    • #1
    • 12th Mar 18, 11:57 AM
    Tax Calculation 12th Mar 18 at 11:57 AM
    Hi All


    I am hoping someone can help me calculate how my upcoming bonus will be taxed.
    In April (at the beginning of the new tax year) I will be getting a bonus of 10,200 which will be paid through PAYE. My normal salary is 35k. I think I am right in saying that when the tax is calculated they will assume that I will be earning that extra 10.2k every month and therefore I will pay a huge amount in tax and then I will pay less tax throughout the year until it balances out??? Is this right? Could anyone with a better understanding than me calculate how much of my bonus I will actually get upfront in April??


    Thank you in advance


    Pip
Page 1
    • Tom99
    • By Tom99 12th Mar 18, 1:03 PM
    • 2,057 Posts
    • 1,382 Thanks
    Tom99
    • #2
    • 12th Mar 18, 1:03 PM
    • #2
    • 12th Mar 18, 1:03 PM
    I believe you will get 1/12th of your 11,850 tax free allowance and 1/12th of your 34,500 20% allowance in April.

    So if your salary in April is 35,000/12 + 10,200 = 13,116.67 you will pay tax:

    987.50 * 0% = 0
    2875 * 20% = 575
    9254.17 * 40% = 3701.67

    Total tax in April 4276.67
    • getmore4less
    • By getmore4less 12th Mar 18, 2:21 PM
    • 32,035 Posts
    • 19,222 Thanks
    getmore4less
    • #3
    • 12th Mar 18, 2:21 PM
    • #3
    • 12th Mar 18, 2:21 PM
    Don't forget the NI,, some that will now be at 2% rather than 12% if it was spread throughout the year so there is a saving.
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