annual bonus tax implications

Thanks for the reply. How does this now work with the new self assessment rules being over 150k now. Also, If I declare my actual salary (123K) with bonus - I will go into a 45% tax bracket and "if" I get the bonus, I should only pay the correct tax on the month I receive it (March 25) and not for the remaining 11 months (which would be 123K) so still being in the lower tax bracket. So, what I'm trying to say is if I declare total earnings, its not a reflection on my actual wages on a monthly basis. Thanks

Hi, Due to recieve back pay in October payslip. This will mean that i will pay 45% tax for that month by my calculations. My pay will return to normal In November and at year end i will be well below the 45% threshold. How soon will i recieve a rebate on the overpaid tax/NI Thanks.

Hi David I,
As long as your tax code is been operated on a cumulative basis, any tax overpaid should be refunded automatically through your wages.
This will be once your income drops below the 45% threshold for the year based on the tax table rates for that week or month.
Please see guidance here:
Income Tax rates and Personal Allowances
Thank you. 
 

Hi, Thanks for the reply. Will drop back to normal the following month, so hopefully rebated then or the following month.

Hi, I have a salary of £36,500 and am due to receive an annual bonus in August of £8000. I have just received my payslip and my total pay has been taxed £3,353 where I normally pay about £355 in income tax. How will I receive this money back? This bonus only birngs my annual income to £44k and doesnt take me over any higher tax bracket. Also, how is your mandatory student loan payments taken in to account? As these have taken 10x what they normally take? Even if I receive a complete NI tax rebate I will still be paying well over what I should on income tax for 1 bonus payment per year?

Hi langers1974,
If your total income, including your bonus, does not exceed £150,000 in 23/24, you will not have to complete a Self Assessment tax return.
From 24/25, you do not need to complete a Self Assessment return, regardless of your level of income, if you have no other Self Assessment criteria.
To accurately update the amount of income your tax code is based on, and for more advice on how your tax code works, contact us by phone
via Self Assessment: general enquiries
Thank you.

Hi loukea0,
As your payment has been received via payroll, assuming your tax code is cumulative and monthly pay, you will have paid tax due on that payment for that month. If your tax is on a cumulative basis, your tax will correct itself as the tax year progresses. This could mean a reduction of tax paid in future payments. If by the end of the tax year your tax has not corrected itself, an end of year reconcilliation will occur to calculate the final tax position. 
Thank you.

Hello - I am on maternity leave but am still receiving a proportion of my monthly commision pay checks. What I have received this tax year to date is as follows: £10,066.06. My pay check plus commission this month is: £3,580. My tax code is: 1257L How much will I approximately be taxed?

Hi,
Unfortunately, it is not possible to check individual tax records through this forum, if you have a question which relates to your personal tax situation or tax code please contact our helpline:  
Income Tax: general enquiries
On this page you will also see a link to
Personal tax account: sign in or set up - GOV.UK (www.gov.uk)
which may be the quickest way to review information relating to pay and tax history, tax codes and how to change them.
Thank you

Hi, my salary is £50000 on a yearly basis, I usually get paid 4166.667 before tax and 3140 after tax and pension pay. October 2024 I got paid my usual salary + a commission of £10077 before tax . At this month, I’ve received £8844 only ! How come would that move from £14243.67 before tax to £8844.39 after tax and pension pay of 110.07. Please help on this and if it sound wrongs

Hi Zack,
This forum is for general queries only and is intended to help you self-serve. We are unable to provide specific advice tailored to individual circumstances.
You may wish to contact our team for advice:
Income Tax: general enquiries
Thank you