Bonus and Tax Code

My current salary is 105k and I will receive a bonus of approximately 20k in February. My company will tax me according for the additional payment. When the new tax year starts in April will I have a 0T tax code and lose any tax allowances as HMRC will assume my new salary is £105k plus the £20k bonus I received in 22/23? My salary fluctuates every year so there is no guarantee I will get anything similar. Alternatively will my company just inform you my salary is £105k and the tax code is provided based on this. Thanks

Hi,

Your estimated income, and therefore your tax code, will be based on your previous years earnings, so a code of 0T as described looks likely. If it is possible that you might earn £125,000, you may prefer to have a code of 0T, if this is operated and your income falls below the expected £125K, you should receive a rebate.

While your employer will provide us with regular updates of your income, your tax code is ultimately your responsibility. If you have an estimate of what you expect to earn for the year that you would like us to use, or if your income changes during the year that you think might affect your tax free allowances, contact our Income Tax team so we can review your record.

Income Tax: general enquiries

Thjank you.