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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6520
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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My query is about personal tax self-assessment and how to

Customer Question

Hello, my query is about personal tax self-assessment and how to manage this so that I don't end up with a large annual bill. I am a full-time employee with no other income apart from my salary and discretionary bonus. I am struggling with applying the correct tax code to ensure my monthly income is not significantly reduced whilst ensuring I don't end up with a large lump sum payment at the end of the year. Thanks
JA: Which tax year is this for?
Customer: 2020 and onwards
JA: Anything else you want the Accountant to know before I connect you?
Customer: No
Submitted: 18 days ago.
Category: Tax
Expert:  taxadvisor.uk replied 18 days ago.

Hello and welcome to JustAnswer. I am here to help you.

Please advise what your salary is and discretionary bonus

Also, do you get any benefits in kind

Many thanks

Customer: replied 18 days ago.
Salary is 107.5k and in the year 2018-2019 I got a pre-tax bonus of 39k. I don’t know what my bonus is yet for the end of March 2020
Customer: replied 18 days ago.
No
Customer: replied 18 days ago.
No benefits apart from standard medical etc. I do however have a baby and a wife who isn’t currently working
Expert:  taxadvisor.uk replied 18 days ago.

Thank you for your reply.

Your earnings with the discretionary bonus puts you above the level where you lose all tax free allowance. This would mean extra tax at 40% on £12,500. This need to be allowed for because your tax code does not take this fully in consideration.

You can always request that HMRC give you a zero tax code.

My aim is to give you a professional service. I hope this is helpful and answers your question.
Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

 

Expert:  taxadvisor.uk replied 18 days ago.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

Many thanks