TAX help

Thread: TAX help

  1. BigBrand's Avatar

    BigBrand said:

    Default TAX help

    Hi all,

    Another finance related question please!

    I currently earn under the £55k threshold and do not pay 40% tax.

    How does this work out monthly? Reason I ask is this month I'm due a bonus payment, as well as overtime payment. With my usual pay, this means I'm looking at around £4600 pre tax.

    My question is, what tax rate will this hit? Is any of this recoverable as my annual salary is below £55k?
     
  2. flipper321's Avatar

    flipper321 said:

    Default Re: TAX help

    Where does the £55k come from?!

    Generally income over £41,865 is taxed at 40%...

    [Only registered and activated users can see links. ]
     
  3. flumperino's Avatar

    flumperino said:

    Default Re: TAX help

    Probably depends when you get your bonus mate.

    If it's the end of March then they'll just count it as part of the 14/15 FY and you should be ok....but if you get it paid at the end of April, you'll get burned as they'll assume that that's your normal salary, and take a big bite out of it, which they'll pay you back through the course of the year.
     
  4. BigBrand's Avatar

    BigBrand said:

    Default Re: TAX help

    Quote Originally Posted by flumperino View Post
    Probably depends when you get your bonus mate.

    If it's the end of March then they'll just count it as part of the 14/15 FY and you should be ok....but if you get it paid at the end of April, you'll get burned as they'll assume that that's your normal salary, and take a big bite out of it, which they'll pay you back through the course of the year.
    I'm getting it at the end of this month, March 27th.

    Is it likely I'll be taxed the wage, bonus and overtime (albeit £700) at the same rate then?
     
  5. hoponbaby's Avatar

    hoponbaby said:

    Default Re: TAX help

    It depends on what your earnings to date are, as it will be paid in month 12 of the tax year then any element which is over the annual 40% threshold will catch for the 40% tax.
     
  6. Geko's Avatar

    Geko said:

    Default Re: TAX help

    Do you get a beneficial tax rate to me? I start paying 40% a lot earlier.
     
  7. blacksheep's Avatar

    blacksheep said:

    Default Re: TAX help

    If you get bonus and overtime and salary in the same month as others have said they'll assume that's your salary and tax you on it but return over next month or so.

    Trouble you'll find is they'll deny they're wrong even when they are. I had them admit they had made a mistake and undercharged me by ~£600 which if they or your employer make a mistake and you've fully disclosed everything whoever makes the mistake eats it. After admitting they'd fucked up and undercharged me they still said I would have to pay - no way to fight it.

    £41865 is the 40% threshold

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  8. BigBrand's Avatar

    BigBrand said:

    Default Re: TAX help

    Quote Originally Posted by Geko View Post
    Do you get a beneficial tax rate to me? I start paying 40% a lot earlier.
    Sorry, I don't know what the threshold is, I just read a webpage that said £55k, but looks as if it's less than that.

    Quote Originally Posted by blacksheep View Post
    If you get bonus and overtime and salary in the same month as others have said they'll assume that's your salary and tax you on it but return over next month or so.

    Trouble you'll find is they'll deny they're wrong even when they are. I had them admit they had made a mistake and undercharged me by ~£600 which if they or your employer make a mistake and you've fully disclosed everything whoever makes the mistake eats it. After admitting they'd fucked up and undercharged me they still said I would have to pay - no way to fight it.

    £41865 is the 40% threshold

    [Only registered and activated users can see links. ]

    OK thanks mate.