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Posted Sat, 30 Apr 2022 05:03:08 GMT by Lukeantoniou Antoniou
Hi all My annual base salary is £35k, this April I received a £12.5k bonus/commission and ended up getting paid £7.5k after tax. Having used various online tax calculators they seem to note I could be taxed an extra £2.8k due to being above the monthly (but not yearly) threshold, the numbers seem to add up exactly, I think I’ve been over taxed. My tax code hasn’t changed though. Is that correct and how would I go about getting the extra money? Hopefully I don’t have to now wait until next April, seems a bit unfair. I have read online it might come through the next pay slips but any idea in what portions if so, and do I need to let my employer or HMRC know? Thanks !
Posted Wed, 04 May 2022 09:28:00 GMT by HMRC Admin 17

Income Tax is deducted when the payment is made, and if this was made in April, you would only be entitled to 1/12 of the tax allowance at that point.

The higher rate threshold in April, would also be 1/12 of the yearly amount and you would have paid a lot of 40% tax on the income that month.

You would pay less tax each month going forward, as you start to fall out of the higher rate threshold as the tax year progresses.

Your tax code would not need to change to do this.

Thank you.
Posted Mon, 23 May 2022 09:40:19 GMT by Lukeantoniou Antoniou
Thanks for confirming, would you be able to confirm if I don't get any additional bonus/commission how much I'd be owed. My calculations are £2800.00, and if that is the case would I get paid an extra 1/12 for the remaining months ie. £233.00 or would it increase to more at some point as I fall out?
Posted Wed, 25 May 2022 10:34:26 GMT by HMRC Admin 10
You would be refunded tax as you started to fall out of the Higher rate threshold.
If you are not resident in Scotland this threshold is £4189 per month.
Posted Mon, 13 Feb 2023 12:38:38 GMT by lucy Jackson
This is a new query but similar if I am to get my uplift as one lump sum for the year - £1400 is it better to get it in March , or if next year I retire half way through the year ( and subsequently earn under the 40% threshold ) is it better to get it in April ?
Posted Wed, 15 Feb 2023 14:21:37 GMT by HMRC Admin 32

HMRC cannot advise you on this as this relates to financial advise which we are not authorised to provide.

Thank you.
Posted Fri, 17 Mar 2023 15:35:42 GMT by James Watson
Hi, I am currently on a K tax code as I owe tax from a previous year. I am due a bonus in this months wage. Will the additional tax I pay from the bonus, pay off the amount I owe?
Posted Wed, 22 Mar 2023 15:37:39 GMT by HMRC Admin 5

If you have an underpayment in the code, the amount owing is spread over the 12 months of the tax year.

Thank you.

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