Tax on Bonus

Linnz2000

Hi,

I have just found out how much my bonus is gross. Please can you help me work out how much I will actually get?

My bonus is £1,024.95 gross and will be in my April pay which on Monday. Also, my student loan deductions begin this month. Can anyone tell me how much I should receive on Monday?

Really want to set up payments to come out of my account on payday as am quite behind on a few, this bonus has come at the right time for me!!

Thanks in advance!

jakesuk

Sounds to me like you'll get taxed 20% flat on the bonus (taking out the student loan factor.)

You're basic salary will be taxed differently though as it's a new tax year. The PAYE should reduce from around £214 to £207 per month.

Procrastinator333

As mentioned you will pay 20% PAYE - I am assuming this is a one off bonus or you wont earn much more than this in a bonus each month.

Lets just call it £1,000 to make it a bit easier...

That leaves £800.

Even with the bonus in the month, your total salary does not excede the UEL for the month and so you will pay 11% on the lot or £110.

That leaves £690.

I'm guessing your pension is a % of salary, but do they take that % off any bonus too? You are contributing about 3%. So if you loose that too, that is another £30.

That leaves £660.

Student loan is 9% on everything over £15k.

First, you will loose about £30 a month of your normal net pay. Then you will loose 9% of your bonus, so another £90.

That leaves £570.

Your standard net pay is going to also change due to the changes in tax bands. I think this will be in your favour, but can't be bothered to look up the tables. But you prob won't gain much more than about £20 a month.

So my guess is your net pay for April will be about

£1,200 +£570-£30+£20 =£1760.

Please remember this was a rough and quick calculation. I have been conservative and rounded down, so you will prob get fractionally more, but I would advise you to wait for your payslip before setting up any payments - I could be wrong!

McKneff

alwasy set your payments up for about 5 days after payday to take into account weekend pay days etc.

lsessm

Hope some can help with a similar related question of my own.

I currently earn £2317 a month gross. Every quarter i get paid a bonus which can differ. Period one I had a bonus payment worth £1552.

Therefore a total of £3869 gross, which puts me into the 40% tax band for that month alone.

I will probably earn approx £32 - £34K for the year and my tax code is 159L (company car)

Can someone tell me would it be better to split bonus payments so that I don't creep into the 40% tax band or knowing that I wont earn over £32 - £34K in a year will it right itself over the preceeding months??

Any help is welcome!!!