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Posted Mon, 03 Jul 2023 15:54:31 GMT by James F
Hi, I've recently been approved for a pay rise from £100,000 a year to £140,000 year. This will be paid to my in the following way: My salary has been increased to £120,000 a year and then I will receive 4 guaranteed bonuses of £5000 each business quarter. My question is how do I inform HMRC about this and what my options are? Do I tell HMRC that my pay has been increased to £140k or do I need to explain the intricacies of how it is paid? If it's the former then will that mean I will be paying a disproportionate amount of tax on a normal month where I don't get any bonus to account for the 4 months where I do get the bonus?
Posted Mon, 10 Jul 2023 07:26:03 GMT by HMRC Admin 5
Hi

If you have signed up for the Personal Tax Account, you can updated your estimated earnings for the current tax year.
We will then update your tax code accordingly. Your tax each month will be determined by how much you earn in that month.

Thank you

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