[Closed] Wages Tax question

As her tax-free allowance will already be used up, she'll be taxed the standard amount on the bonus, so 20%. Of course, there is also NI to account for so assume an additional £600 in deductions and you'll not be far off. Call it a total of £3,300 for the month.

Scotroutes is about right - but there is a slight complication in the way PAYE is calculated - which makes the difference depending which month it was paid in. Scotroutes estimate will be fine if it is paid in March (last month of tax year). If its paid in April (first month of tax year) the PAYE formulae assume her annual salary is c. £55k and she is taxed accordingly. As each month progresses this then corrects itself so at the end of the year she has still paid the correct tax.

Anywhere in between these extremes will be somewhere in the middle.

Ah - I was assuming the bonus payment was imminent (like this month or next).

will be paid at end of November 2014

thanks so far

Effective take home will be about 3500 assuming no company car or other factors affecting her base tax code.

Could well be a couple of hundred quid less than that on her payslip depending how she is taxed as it will push her over the 40% tax threshold for the month, if that does happen it will come back to her by means of paying less tax in subsequent months, so she'll be no worse off overall.

Her payroll people are the ones to ask really as other factors, pension etc will have a bearing.