We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Tax on Bonus

Hi everyone,
I am due a bonus of about £6k from work in the next few weeks, and wonder if there is anything I can LEGALLY do to avoid paying full tax on this amount.

The bonus will not take me into the 40% tax bracket.

I know it's unlikely as tax avoidance is for the rich, but worth asking!

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Youre right, it is unlikely lol.

    Pay it into your pension pot, i think thats the only way to avoid the tax at 20%.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • FatAndy
    FatAndy Posts: 7,541 Forumite
    The other way to avoid paying extra tax would be to do 'a Hester' and refuse the bonus ;).
    The fridge is empty, the walls are damp, there's no hot water
    And I look like a tramp and tramps like us
    Baby we were born to walk
  • chrismac1
    chrismac1 Posts: 2,585 Forumite
    Getting it paid on 6 April at least defers the problem, gives you more time to set up pension arrangements if that's the route you go down.
    Hideous Muddles from Right Charlies
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.6K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455.1K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 603K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.