Tax on bonus?

willhub

willhub

willhub

Caporegime
Joined
3 Jan 2006
Posts
25,280
Location
Chadderton, Oldham
Just been working out what my pay will be roughly this month.

I got a 1350 bonus, and out of that bonus the amount that will make it into my take home pay is only £800, is it normal to be paying 550 quid extra in taxes for this bonus?
 
I used Listen to the tax man , I just added my bonus on top of my wage before tax.

And I'm no where near 40% bracket.

My pre-tax is 1999.02
My take home wage is 1620.
Bonus 1350 (before tax)

1250L tax code.


461.33 tax, ni 306.89 and student loan 155

22.5k a year is my salary
 
willhub said:
Just been working out what my pay will be roughly this month.

I got a 1350 bonus, and out of that bonus the amount that will make it into my take home pay is only £800, is it normal to be paying 550 quid extra in taxes for this bonus?
Click to expand...


Sounds about right esp if you are straddling the 40% tax threshold.

Worked example for you.

50k a year is 4166 a month. 624 tax at 20% rate, 405 ni equals 3136 take home.

Add 1350 bonus, giving 5516 monthly for that month, 625 tax at 20%, 539 tax at 40%, 431 ni equals 3919. 3919 - 3136 = 783 extra.
 
willhub said:
I used Listen to the tax man , I just added my bonus on top of my wage before tax.

And I'm no where near 40% bracket.

My pre-tax is 1999.02
My take home wage is 1620.
Bonus 1350 (before tax)

1250L tax code.


461.33 tax, ni 306.89 and student loan 155

22.5k a year is my salary
Click to expand...

Did you do it over a year or just the month.
If just the month then your tax bill may drop next month
 
Just seen your other post, so new worked examplke:-

22.5k a year is 1875 a month. 166 tax at 20% rate, 130 ni equals 1578 take home.

Add 1350 bonus, giving 3225 monthly for that month, 436 tax at 20%, 292 ni equals 2496. 2496 - 1578 = 918 extra, subtract 9% student loan payments = 835.

So yes, 800 net is about what you'd expect from a1350 bonus.
 
We get it a lot with our bar staff. They top up wages with holiday pay and then get taxed a boat load as theyve gone from £200 pw to £600. But then their tax goes down to compensate the next week.

It may not adjust that quickly. But the system thinks their wage has gone up so adjust accordingly then when it goes back down it re adjusts
 
I reckon it'll get a recalc at the end of tax year, you'll probably get a cheque through the post as they then think your bonus is your usual salary. It'll level out.
 
I never got any rebate in April this year? And last year my wage was jumping from 1580 to 1900-2100 every 3 months in line with the bonuses.

Can HMRC do a checkup if I prompt them to now?
 
You can get them to check it yes. Do you have a government gateway set up? I normally get an email notifying me of a rebate and log on to claim it.
 
It can take a year or 2 for rebates to come through, I think the last time I go one it was for the tax year 2 years previous or at least this used to be the case.
 
If you stay under the 40% threshold you should be charged for two thing 20% tax and 12% national insurance, so 32% tax on the bonus??

^^ ah student loan too, fantastic.

In which case 41% tax, so the calc in the OP looks right.
 
I logged into my government gateway and states I paid the right tax.

Still seems a lot, the student loan is "only" 155 quid.
 
If you put the numbers into the tax calculator on moneysavingexpert.com it looks like the tax has been calculated correctly.
Left column is a normal month, right is normal + bonus.
KwJbrmQ.png


(I've done the calculation twice and cut the images together - it doesn't actually let you compare different months like that)
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom