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Where Taxpayers and Advisers Meet

Tax on a bonus in March

ljk123
Posts: 1
Joined: Tue Jan 09, 2018 5:33 pm

Tax on a bonus in March

Postby ljk123 » Tue Jan 09, 2018 5:39 pm

So, my gross salary is £19650 in march I will be receiving a bonus of £4660. Im totally unsure of how income tax works, but from what I can figure out, I will pay tax on it as if I was a higher tax payer, then I should 'receive' that tax back by paying less in the following months. Is that correct even though it is the end of a financial year? Is there anything I need to do?

Oh if only I was a large corporation who could get away with paying little -no tax :lol:

Thanks in advance!

robbob
Posts: 2769
Joined: Wed Aug 06, 2008 4:01 pm

Re: Tax on a bonus in March

Postby robbob » Tue Jan 09, 2018 8:56 pm

Normally March is the last month of the tax year (unless your pay date is 1st-5th) - i am presuming your pay date for this income is prior to 06/04/2018 !!
As long as your tax code is cumulative (Ie not M1) and you are paid prior to 6/4/2018 everything should work out fine as effectively its a correct full years tax calc being done or 11/12 of the tax year if paid 1st-5th March either of which should cope with this yes i can afford the vegas trip now scenario that applies as long as higher rate tax hasn't been charged.


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