Conn5654
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Significant deductions on an annual bonus / back-dated pay rise
Hi, I receive an annual retention bonus of approximately £2500 each November. Also in November, we are being back-dated a pay rise that was due in April but subject to debate by the unions. My new annual salary as of this pay rise is £44711 p/a. To that end, my November pay is looking significantly larger than usual, but it has been taxed at what seems like an incredibly high rate - almost the entire bonus has gone in deductions, and my take-home is £1000 less than it was this time last year with the same bonus and without a pay rise. I've read some conflicting information here about whether this amounts to a tax refund in April or to reduced tax payments over the coming months when my pay packet will look significantly slimmer. Can anyone explain why exactly so much money appears to have vanished and what the process is moving forward?
