This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

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:3228
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.


Return to “PAYE and Payroll Taxes, National Insurance, NICs”