Tax on a bonus. Help!

[Fullofpudding]

Hi, I don't normally get taxed a great deal as I only earn about 13k a year. I've however had a payment for some back pay of just over £900. I've now lost £400 of this to tax and NI. Will my tax. 'right' itself. Does the taxman think this is my new monthly salary? Can't believe I've lost so much of it.

That tax threshold is £12,570 I believe,anymore after that will be taxed until the new tax year starts again,you may get a tax rebate

The taxman will think this is your new monthly salary but it will soon right itself, either in the tax system or you will get a rebate, usually about May. As we are at the end of the tax year a rebate is likely.

Tax and NI is 32% I believe so it looks like you have overpaid a bit of tax, you would expect to pay about £300 on £900 as you are past the £12570 threshold

As its calculated out over 12 months it will right itself, it just can go a bit wild with stuff like this as it assumes its a new monthly salary.

Yes it will right itself in time. However as we're fairly close to the end of the tax year and you normally pay very little tax, there won't be time for it to make it right all by itself at the end of March so when you get to the end of the tax year at some point HMRC will see that you've paid too much tax and either adjust your tax code to pay less tax next year, or send you a refund.

If they do the former, and you expect to continue earning at the same low level, I'd contact them (I think they have a live chat facility) and say that you've overpaid the tax and would rather have it back in one lump now instead of in dribs and drabs over the next year or two.

What tax code are you on? With us being so close to end of tax year I wouldn’t have expected the tax to be that amount unless you are w1m1 code in which case it won’t right itself through payroll and you’d have to wait months for hmrc to recalculate

Do you mean the £400 is on the £900 or is £400 the total deductions in the month ?