My wife has a tax code of 657L. She's already been paid in February but,
for reasons best known to themselves, her employers have chosen to pay her
annual bonus as a separate payment, complete with separate wageslip etc etc.

The bonus was £239.93 and there are deductions of £48 (PAYE) and £26.39
(NI).

She's a basic rate tax payer and thinks (well, the entire staff thinks!)
that the deductions are way too high.

Any thoughts anyone?

Thanks in advance.

"Justin Credible" wrote in message
m...
My wife has a tax code of 657L. She's already been paid in February
but, for reasons best known to themselves, her employers have chosen
to pay her annual bonus as a separate payment, complete with
separate wageslip etc etc.

The bonus was £239.93 and there are deductions of £48 (PAYE) and
£26.39 (NI).

She's a basic rate tax payer and thinks (well, the entire staff
thinks!) that the deductions are way too high.

They're spot on. As it's an extra payment none of the allowance will
be used against it (the pay period will be the same as that of the Feb
pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39

--
Andy

"Andy Pandy" wrote in message
...

They're spot on. As it's an extra payment none of the allowance will be
used against it (the pay period will be the same as that of the Feb pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39

--
Andy


Many thanks for the answer.

So.....has she paid too much tax and will have to claim it back in April?
Or would she have been better off if the payment had been lumped in with her
February salary?

"Andy Pandy" wrote in message
...

"Justin Credible" wrote in message
m...
My wife has a tax code of 657L. She's already been paid in February but,
for reasons best known to themselves, her employers have chosen to pay
her annual bonus as a separate payment, complete with separate wageslip
etc etc.

The bonus was £239.93 and there are deductions of £48 (PAYE) and £26.39
(NI).

She's a basic rate tax payer and thinks (well, the entire staff thinks!)
that the deductions are way too high.

They're spot on. As it's an extra payment none of the allowance will be
used against it (the pay period will be the same as that of the Feb pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39

This might be correct for the tax, but it can't be right for the NI.

What if the normal salary for the month was above the UEL, or the total of
normal salary plus bonus is below the LEL? Surely this has to be taken into
account?

tim

"tim...." wrote in message
...

"Andy Pandy" wrote in message
...

"Justin Credible" wrote in message
m...
My wife has a tax code of 657L. She's already been paid in February
but, for reasons best known to themselves, her employers have chosen to
pay her annual bonus as a separate payment, complete with separate
wageslip etc etc.

The bonus was £239.93 and there are deductions of £48 (PAYE) and £26.39
(NI).

She's a basic rate tax payer and thinks (well, the entire staff thinks!)
that the deductions are way too high.

They're spot on. As it's an extra payment none of the allowance will be
used against it (the pay period will be the same as that of the Feb pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39

This might be correct for the tax, but it can't be right for the NI.

What if the normal salary for the month was above the UEL, or the total of
normal salary plus bonus is below the LEL? Surely this has to be taken
into account?

tim


Well - it could be wrong. But I very much doubt it. Which is not the same
as saying "it can't be right"...!

The tax rate could be pushed into 40% by the bonus, for example. The wife
could be over 59 and hence no EE's NI payable. Or contracted out....

BTW, you wrote LEL, but I hope you meant ET.

Payroll s/ware is pretty good these days... I reckon you can relax :-)


--
Martin

"Martin" wrote in message
...

Well - it could be wrong. But I very much doubt it. Which is not the
same
as saying "it can't be right"...!

The tax rate could be pushed into 40% by the bonus, for example. The wife
could be over 59 and hence no EE's NI payable. Or contracted out....

BTW, you wrote LEL, but I hope you meant ET.

Payroll s/ware is pretty good these days... I reckon you can relax :-)


--
Martin


No danger of creeping into the 40% tax bracket and the wife is in her
forties.......

Justin Credible wrote:


So.....has she paid too much tax and will have to claim it back in
April? Or would she have been better off if the payment had been lumped
in with her February salary?

She hasn't paid too much tax, and even if she had, unless she is on a
week 1/month 1 code (usually the result of completing P46) it will
automatically correct itself at the next pay day. If she had overpaid
tax, the only cost would be the cost of money, but that is rather low
these days.

"Justin Credible" wrote in message
om...


"Andy Pandy" wrote in message
...

They're spot on. As it's an extra payment none of the allowance
will be used against it (the pay period will be the same as that of
the Feb pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39


Many thanks for the answer.

So.....has she paid too much tax and will have to claim it back in
April?

No. The deductions are correct.

Or would she have been better off if the payment had been lumped in
with her February salary?

Makes no difference.

--
Andy

"tim...." wrote in message
...

"Andy Pandy" wrote in message
...

"Justin Credible" wrote in message
m...
My wife has a tax code of 657L. She's already been paid in
February but, for reasons best known to themselves, her employers
have chosen to pay her annual bonus as a separate payment,
complete with separate wageslip etc etc.

The bonus was £239.93 and there are deductions of £48 (PAYE) and
£26.39 (NI).

She's a basic rate tax payer and thinks (well, the entire staff
thinks!) that the deductions are way too high.

They're spot on. As it's an extra payment none of the allowance
will be used against it (the pay period will be the same as that of
the Feb pay).

Tax 240*0.2 = 48.00 [PAYE works on whole pounds to date]
NI 239.93*0.11 = 26.39

This might be correct for the tax, but it can't be right for the NI.

What if the normal salary for the month was above the UEL, or the
total of normal salary plus bonus is below the LEL?

He said she was a basic rate taxpayer, which means her earnings are
above the PT (& LEL) and below the UEL (the UEL is now aligned with
the 40% tax band).

OK in some circumstances they aren't exactly aligned (eg
benefits/pension contributions can make the levels different), but
he's also now said no danger of being near the 40% tax band.

--
Andy

"Martin" wrote in message
...
BTW, you wrote LEL, but I hope you meant ET.

Or even PT.

--
Andy