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Could I get a rebate in the future...
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Heya,
I'm completely thick when it comes to stuff like tax etc so please bare with me if I'm being utterly dumb.
I've got the tax code 643L and my annual wage is £16,500 basic.
Obviously I get taxed and the normal rate etc.
But then on top of that I have the potential to earn bonus and comission which obviously bumps up my tax month to month. So one month I could get £1375 (basic) before tax and then the next get £1500 etc.
What I want to know is is this tax on this final, because it ends up when I do get a bit of comission etc it gets heavily taxed. For example this month I did over £2k more than my targets, received £120 bonus and then about £150 in commission but by the time it got to me (through a clawback and tax) I took home just a meagre £80.
Hopefully this makes sense!
I'm completely thick when it comes to stuff like tax etc so please bare with me if I'm being utterly dumb.
I've got the tax code 643L and my annual wage is £16,500 basic.
Obviously I get taxed and the normal rate etc.
But then on top of that I have the potential to earn bonus and comission which obviously bumps up my tax month to month. So one month I could get £1375 (basic) before tax and then the next get £1500 etc.
What I want to know is is this tax on this final, because it ends up when I do get a bit of comission etc it gets heavily taxed. For example this month I did over £2k more than my targets, received £120 bonus and then about £150 in commission but by the time it got to me (through a clawback and tax) I took home just a meagre £80.
Hopefully this makes sense!
0
Comments
As I understand it, if you look on your P60 it isn't classed as 'taxable earnings', I think it is classed as like an additional income or something, so I don't think it qualifies towards the actual tax that you are paying if that makes sense. Basically, even though you do pay tax on it before you receive it, that tax isn't included on your P60 as the amount of tax you have paid for that year. I could be talking nonsense but from memory when looking at my P60 in April time this is what I remember seeing on there. Please someone correct me if I'm wrong! But my advice to you would be to check your P60.
Any extra commission I would presume could be a different amount every month so this will be taxed at 20% in the month you receive it as unlike your wage there is no set figure you will receive in comission.
Working on this basis you'll be currently paying more tax in months where u get a higher bonus. If you under/over pay tax slighty it will be shown in your April payslip
When you get your P60 this will include your year's earnings and the amount of tax deducted. Bonuses and commission payments are taxable income and should be listed on your P60 as such. If you've paid too much tax then you will have this refunded in the next tax year, starting April 2010, and this is also usually done through PAYE. It's normally done automatically but it might be worth checking with your tax office. HMRC won't usually decide if you've paid too much tax until April, unless you find yourself out of work completely. You can't usually get a rebate on overpaid NI contributions.
you could check out the web site direct.gov.co.uk.....they should have all the information there to help or the hmrc website.