Can I claim back extra tax paid on a one off bonus? (UK)?

Hi Rachel Because you are being paid through the PAYE system as an employee you should have the correct amount of tax deducted...but this depends upon your tax code and if you have changed jobs since last March. The PAYE system is set up so that it adds together all of the income you have received so far this year, compares it to the amount of tax you should pay on that total income and the amount of tax you have paid so far. So it should tax you a bit more in the month you get your bonus and a bit less next month when you don't have a bonus...and by the end of March you should have paid the correct amount of tax overall as your tax gets totally recalculated each time your employer runs the payroll. However, as I said, this depends upon your tax code and if you have changed jobs since last March. If you have a normal tax code, like 747L, then no worries. If your tax code ends with W1, M1 or X, then you are correct and it will deduct the wrong amount of tax - and the only way to do anything about it is to wait until you get your P60 in April and then write to the tax office with a copy of your P60 (keep the original!) and request that they check and repay any overpaid tax. The taxman is actually pretty good at sorting you out, but it will mean waiting a bit for your tax refund. If you have changed jobs since last March then again there might be a problem, either with your tax code or with the details of the amount of income and tax deducted by your previous employer that your current employer needs to include to get the calculation right. Again the only resolution is to ask the tax office for help in checking and correcting it once you have your P60. Of course you can always ask an accountant to check the calculations for you, but that might cost you and the taxman will do it for free! I hope this helps, Jonathan

Bonus in February, so the March payment will include that in the calculation and return the over deducted tax to the end of the year. Your payroll will adjust in March. Once final figures are reported in the next tax year the calculation is checked by HMRC. If (unlikely) you had still overpaid tax up to the end of March HMRC will automatically repay the excess.