Bonus during SMP

[jadeyty]

I get a bonus which I should get in July but at this point I'll be on maternity leave on full salary. I can change the month I get this bonus to a later month when my pay is reduced to SMP.

Will it make a difference to my tax? I'm wondering whether I will pay less tax on my bonus if I get it on a lower paid month?

No tax is worked out from your earnings over the whole 12 months from April so it will make no difference.

As above providing your tax code is not followed by M1 (month 1 basis- as in not calculated year to date)

The tax that will be ultimately due on your bonus will depend on the tax year you get it in, not the month. I think I got an adjustment in the first payslip after my pay dropped on mat leave, even without bonus you will have overpaid a little as PAYE calcs assume the same salary all year, so should imagine anything you overpaid on the bonus would also come back at that point. It might be more convenient cashflow-wise to have it as something coming in after your main salary drops, OTOH you could take it and stick it somewhere it will earn a little interest.

You will pay higher tax in the month of the bonus but the year to date calculation will result in a tax reduction and ultimately possibly a refund in future amounts to even this out.

(Not maternity leave but I worked six months a year while at university and received a tax refund every week while at university, it was my drinking fund every Wednesday!)

I get that I will pay the same amount of tax over the whole tax year regardless of what month I get the bonus in. Was more thinking that if I get the bonus in a lower paid month, I will pay less tax that month and therefore not have to wait for the refund at the end of tax year.

You will pay less tax in that month but the position year to date will stay the same.

If everything else is correct and all of your income is through your employer, it should correct itself through refunds each month rather than having to make a refund claim after the end of the tax year.