PAYE amount following bonus

[Payeconfused]

Can someone help me calculate this please? First time working anywhere that awards bonuses. I’ve had my payslip and I’m unsure how to check I’ve paid the correct amount of tax. It seems really high to me, but I’ve never really known how to calculate it (and ultimately I’ve come away with more than I usually have but I would just like to know!).

I earn c£4240.00 per month gross. Just short of £51k per year.

Usual month
c£3100 net
c£245 NI
c£677 PAYE
(Some other payroll and deductions but don’t think they are relevant here - non are pension related.)

This month
c£9100 gross (bonus was c£5k - annual bonus, no others throughout the year)
c£6100 net
c£351 NI
c£2700 PAYE.

So I’ve taken home about £3k out of the £5k awarded - paid £2k more that usual in tax.

Is that about right?

My tax code is 1257L and NI category is A. (On my payslips where it says tax basis, that is left blank.) Annual,salary is a few pounds short of £51K although as of next month this will increase to just under £52.5K.

Thank you .

@Payeconfused Download the HMRC app. They have a calculator on there it’s very accurate

Sadly yes it is correct. You will be in the 40% tax band for all of those earnings because from what you say your earnings are enough to have pushed you into that bracket. The first amount of your monthly pay gives you some tax free, some at 20% and then possibly a small amount at 40%. However with your bonus you have used all of those allowances and therefore for all of that you are paying 40% on it.

Well yes, the bonus is taxed at 40% - why would you think you’d take home more?

If you have had your final payslip before the end end of March, put your total earnings paid to date into an online tax calculator with any pension details and it will tell you if you have over paid cumulatively.

Also if you are a higher rate tax payer check you are getting your full tax relief on the pension contributions as you normally only get basic rate relief through your payslips.

If you're in 40% tax bracket you literally surrender nearly half your bonus to HMRC. Super annoying as they've done nothing to earn it, but them's the rules!

Feels about right. Sadly you’re in the category of “those with the broadest shoulders” expected to “do your fair share” and prop up the whim of the government and wants of others. A prime example of why it’s so unfair

Agree. Looks roughly correct. 40% bracket.

Yes looks about right and it is demoralising and so annoying!

Yep, that is sadly correct. 40% tax and 2% NI you will have paid on it, so basically you're receiving only 58% of the bonus. Which is why I've put my bonus this year into my pension, so I don't have to give nearly half of it away in tax.

I can only hope I live long enough to get the benefit.

Yep, depressing isn’t it

Could be worse OP, you could have a student loan and so be taking home less than 50% of it…!

As this is a year end payslip and with 50k basic you would pay 40% tax and 2% nic on the whole lot.

If you put the bonus into a pension you can get the tax back but you will need to be quick and do it in this tax year ie before 5th April.

Yes, normal for the reasons pp have said