Income tax on bonus

sternjohn662200

I Have recently been informed that i will be recieving a payrise and a bonus due to the work i have done over the last year which is always good news.

I have a question though. My salary is being increased to £25,000 and i am to recieve a bonus of 2.5k. How much will i recieve bonus and if i recieve both salary increase and bonus in the same month will i take home less?

I have worked out using the tax calculator online that my wages will increase by £230 p/m including the change in the tax code to 747L. Im not sure how i work out how much i will pay though.

Do i get taxed on my bonus as if i was recieving that amount everymonth so my salary was in effect £55k or do i say pay approx 33% like when i work overtime. Its just if it is worked out by the first method then i will be in a higher tax bracket.

Any help would be appreciated

molerat

You may pay higher rate tax in the month of the bonus payment but it will be refunded to you via the PAYE system over the following months. On the plus side you will not pay the full 12% NI on the whole bonus.

edit
On a 25K salary you will only get taxed at the higher rate if you are paid the bonus in April pay, any later and you will be below the accumulated threshold that month.