Tax in relation to period

M

MonkeyMagic2

Guest
Question about UK tax but is probably relevant to Irish tax too.
I am leaving the UK at the end of April 2007 to return to Ireland. The tax year in the UK is April to April. My last pay period will be at the end of April and the company I am working for is giving me a bonus(issued because I stayed on longer in the company due to project schedule). So my last payslip will be quite large(probably in the region of £5K before tax).

My question is how much of this will be taxed? I assume that everyones pay is larger than normal at the start of every tax year because there is the following tax free allowance in the UK.

Starting rate: 10% from 0 - £2150
Basic rate: 22% from £2150 - £33,000
Higher rate: 40% over £33,000

I am I right to assume that I will be in just the first 2 brackets starting off again or is this spread out throughout the whole year as a percentage average?

Regards.
 
Depends on a lot of things, including your personal tax allowances and any tax credits that you receive. However, you should end up paying the correct amount of tax if payroll is operated correctly.

You could calculate the correct amount yourself at the end of the year, (using Revenue rates etc) and if you think you have paid too much, complete a tax return and claim it back.
 
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