Hi, My anual PAYE salary is £35,700, I have a company car and a fuel card (unlimited option), putting all that aside, my tax code is K192. I expect a 20% bonus in June that is £7,140. I just wondered what I would see net? A tax calculator that is spot on regards my current monthly/yearly net is : http://www.uktaxcalculators.co.uk/ Regards the bonus, it says : From your basic pay, you earned £35,700.00 in the 2010/2011 Tax Year, on which you were taxed £7,568.00 and paid National Insurance of £3,297.80 With your bonus of £7140, your new Annual Gross Income would be £42,840.00 You would owe additional tax of £2,856.00 You would owe additional National Insurance of £785.40 My question is...In anticipation of when I get paid my bonus in June/July for £7,140 gross, will I see only £3,499 NET pay? thanks ps: I dont have any other pay packet detail with me, but that tax calculator is correct if you input k192 code net = £2,069, would like to get a rough idea today, let me know. thanks.
As I get paid in June only 3 months into 11/12 tax year do you think I will get the bonus at 20% as I would not have been paid over the threshold in the new tax year yet, and then pay the difference as lump sum when a tax calculation is done at end of year? or be spread over my pay in 12/13?
Can you let me know. Thanks.
Although it's paid only 3 months through the tax year, the PAYE system works by splitting the annual limits into monthly limits for people paid monthly. Therefore, it should take 40% on the bonus payment, sorry.
If you subsequently were paid less in the year or stopped working, etc, the additional tax would be repayable, again, this would be done automatically through the PAYE system.