Bonus and tax

[TheAngryDog]

Hi all,

I received a bonus last month which included with my normal pay, I paid around £1900 in extra tax (nearly half my bonus). It didn't take me into the 40% threshold at the time, and added to my wages this month still hasn't. Next month I will creep into 40% by about £2500. I know it is a little ambiguous, but does it sound like I'll be owed some tax back?

Thanks.

[trickywoo]

TheAngryDog said:

I know it is a little ambiguous, but does it sound like I'll be owed some tax back?

Thanks.

Maybe but we are pretty close to April so you shouldn’t be expecting much back.

[VR99]

If you have a work pension scheme that offers salary sacrifice you could divert into the pension to avoid 40% tax or make a SIPP contribution before the end of this tax year. I think it's worthwhile if you are borderline straying into higher tax.

Not sure I'm clear on your question though, if HMRC take too much tax they might give you a tax rebate or they could simply adjust your tax code for the 23-24 tax year (increase your personal allowance). They have done both for me before and I have no idea how they decide between a tax rebate(cash) or a code adjustment.