Tax Expert

[3sixty]

Is anyone here able to help me with a very small (and probably very easy) tax question?

I've been awarded a bonus through work which is applicable to tax, but there seems to be a large percentage deducted, more than I would expect for my tax band.

If anyone can help, please message me or reply here.

[Loo P]

They will deduct NI as well (about 12%)

[Eric Mc]

Are you a higher rate tax payer?

If you wren't one already, is the bonus sufficient to put you into the higher rate tax bracket (over £44,145 inclusive of your tax allowances).

[mcflurry]

It will be prorated from April. i.e. if your Apr + May + Jun + July salary times 3 (div 4, times 12) is more than £44k then it will be in the higher band.

It will all come back into line as it washes through

[3sixty]

I'm not higher rate, and won't be as a result of my salary going forward. It remains unchanged from last year.

I did the crude method of multiplied by 78% to get it without tax and NI. Is this correct way?

[smartie]

no, you lose 20% tax and 12% (ish) ni so multiply gross by 0.68, as also mentioned, if this takes your gross to date over about £14500 then some might be taxed at 40%!