How much tax will I pay on my bonus?

leo1975_2

Hi

Hope somebody can help!

I am getting paid my annual bonus in April of £3,017 (before tax) but am unsure as to how much I will receive after tax?

My current wage is £35,362, so this bonus will take me into the 40% tax threshold but as its first month of the financial year, I am not sure how much of that will be taxed at 40%? Or si that not how it works?!!

Any help is greatly appreciated

Thanks

fengirl_2

About £2700 will be taxed at 40%, but this will gradually be refunded to you throughout the year as you will not be a 40% taxpayer.

leo1975_2

Thanks for your help, much appreciated

Money_Grabber13579

Is your current wage before or after tax? If it's before tax, then the bonus won't take you into the 40% band at all, unless you've got no nil rate band.

Although, I think that might be what Fengirl is saying anyway...;)

sunshinetours

Take into account all your other income and include any benefits in kind to see if you will be into the 40% bracket. Broadly speaking if all of that is over £44k you will be into 40% rate on part of your income for that particular tax year

molerat

As fengirl says, although you will not be in the 40% band at the end of the tax year, this month's pay will be iro £6k which the tax tables will assume is your normal pay (iro £72k) and tax you accordingly. As the year goes on the tax tables will resolve the situation by gradually refunding the overpayment.