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Posted Wed, 06 Mar 2024 22:27:39 GMT by Nitin Bhatia
Hello, hopefully someone can please clarify this for me: Im a PAYE employee but have to do my self assessment due to the 100k+ salary rule. In 2021 & 2022, I thought my employer would have notified HMRC about my salary increase each year but that was not the case and I ended up getting an under-tax bill from HMRC. So I learnt my lesson the hard way and have been updating my annual salary on the HMRC website. HOWEVER, I am also entitled to a performance based Bonus which is usually paid at the end of March each year for the previous year's performance. My question should I communicate the bonus to HMRC (IN ADVANCE) AND IN ANTICIPATION of what i might get, more or less. Even though my employer deducts my tax, I have been surprised that as per HMRCs' calculation I have paid less tax. I didnt even know that was possible, but its hard to argue with HMRC, so Ive just quietly paid. I dont have any other source of income regular or erratic. I'll appreciate some advise Kind regards
Posted Fri, 08 Mar 2024 14:14:07 GMT by HMRC Admin 20
Hi Nitin Bhatia,
If you are due a bonus each year then you would need to include an estimate for this when you update your salary details to enable the correct tax to be deducted.
Thank you.

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