Tax on a bonus

[HettyMeg]

Hello, I have received a bonus at work that I've just realised will tip me into the next tax threshold for the year. I have been taxed heavily this month because of it - will I remain in the higher threshold for the rest of the year? Thanks (I'm no good at taxes)

PAYE, unless you're on a Month1 code or similar, is applied cumulatively.

You should only pay 40% (or whatever) on the amount by which your income over the whole tax year exceeds the threshold.

Can you reduce the taxable amount by (eg) putting money into a pension.

There's dynamic tax coding now so they will adjust the amount of tax you will pay in following months.
I used to get my bonus at the start of the tax year which was a pain, usually months 2 and 3 after the bonus I'd get tax back rather than pay it then a couple of months of lower than usual tax then as expected. Except for the very first year, before they could select that a bonus was a one off payment, I've always finished the year having paid the exact amount of tax.

You will get a refund next June. I just got mine for the previous tax year. Provided you remain under the threshold. My bonus pushed me above the 100k projection in the bonus month. My tax wasn't adjusted the following months. I got a lump sum after the tax year ended.