Taxed too much on bonus..

[chris.tarry85]

So the long and short is I'm down by about £500 vs. what I was expecting. I've calculated it manually and it looks like the tax rate applied is way too high.

Employer says I need to speak to HMRC, given that it's the end of the tax year in a couple of weeks is it worth the effort? I presume when I'm reconciled at the end of the year it will throw up the overpayment and either refund or adjust next years tax code?

Ta

 

[Maccapacca]

Yes they don't differentiate a bonus as a bonus so you will be taxed as in you're going to get that every month from then on in. April may be the end of the tax year but you might not get that back till next January so it might be worth chasing.

 

[Mr^B]

It depends why you were taxed too much. There's a couple of different scenarios;

1. As per above, HMRC assumed that was your new salary, and therefore adjusted the tax free amount (if you use the online portal you can check and see what your earnings estimate is and see if they have got it wrong). You'll get that back in your tax code or as a rebate after you submit this years tax return later on this year.
2. You have passed a tax threshold for the month, but not for the year, in which case you'll usually get the money back in next month's payslip.
3. Something else that hasn't happened to me - as both 1 and 2 have.

Best bet is to phone them up. They're surprisingly reasonable to deal with if you have queries like this.

 

[Kol]

HMRC are surprisingly very efficient on the phone. I had a tax problem a few months ago and I think I was on the phone for four minutes (most of that in a queue). The problem was sorted and my tax code adjusted.

 

[kindai]

HMRC are surprisingly very efficient on the phone. I had a tax problem a few months ago and I think I was on the phone for four minutes (most of that in a queue). The problem was sorted and my tax code adjusted.

Quite, my online portal was showing me 4 different figures for what tax I needed to pay via SA.

Rang up, the lady on the phone didn't know why it was giving me 4 different figures, so got her calculator out, did some calculations and told me the correct one to pay. Once everything processed through, yep, everything zeroed out

 

[Semple]

As above, HMRC seem to always go on the assumption that this is your new monthly payment, which is frankly very annoying. I get a VPB, Pay Rise, and 2 payouts from stocks in the financial year, so each time HMRC are trying to guess how much tax i should be paying.

I would wait for your P60 and then use that to determine whether you get a refund and how much.

 

[HangTime]

Don't rely on their systems automatically figuring it out and rebating you. During the current tax year I had a letter telling me I had paid too little tax in the previous tax year so were adjusting my tax code; I disagreed and felt I had paid too much tax so had to phone them up to get it corrected.