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Sam
Sam, Accountant
Category: Tax
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I am trying to predict my earnings ( net pay) for 2018/19- I

Resolved Question:

Hello I am trying to predict my earnings ( net pay) for 2018/19- I am using the current tax bands as this is close enough.
Situation s I will earn up to £300k gross next year and I have a one off retention bonus to be paid in May 2018 of £100k gross .
I am currently on an OT tax code so have no allowance. I can work out my monthly net pay after pension etc - but I am struggling to understand how much I will need to pay on my self assessment on the earnings over £100k
Submitted: 21 days ago.
Category: Tax
Expert:  Sam replied 21 days ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 21 days ago.

Hi

Thanks for your patience

On code OT this will ensure that you have no personal allowances but should ensure that the right rates of tax are paid and as both your salary and bonus will be paid through the payroll, so all should be taxed correctly and self assessment would only need to mop up items such as investment income or other external incomes and give you additional tax relief for pension paid after salary has been taxed or charitable giving

So code OT would operate as follows on published 2018/2019 rate bands

Total income position £400,000

£32500 at 20% = £6700

£117,500 at 40% = £47000

£250,000 x 45% = £112500

Total tax due £166200

Which leaves you £233,800 net take home pay

This has not included National Insurance which would take a further £11523 from this leaving a net position of £222277 for the year

Let me know if I can assist further

Thanks

Sam

Customer: replied 21 days ago.
Thank you Sam
Can I just though I based this on £300k including the retention bonus ?tahsnk againHelen
Expert:  Sam replied 21 days ago.

HI Helen

I have provided the full calculation for the year (take home pay was after tax and National Insurance on both the salary and bonus) - which included the salary and the bonus - and as they both have to be paid through the payroll PAYE (real Time Information) by your company - self assessment will NOT give rise to any hidden tax surprises if your employer operates code 0T correctly

Let me know if I can assist further, or, if you have all that you need, it would be appreciated if you could rate me for the level of service I have provided, or click accept

Thanks

Sam

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