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Does the format of a bonus matter?
Yorkie1974
Posts: 62 Forumite
in Cutting tax
I'm due to receive a £5,000 bonus for work in the last financial year from my employer. Does it make any difference to tax in either the long or short term if I take it as a lump sum, or is there a better way to receive this? My annual salary is £32k, so it won't take me into a higher tax bracket either way.
0
Comments
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it is better to get is as a lump sum
Smaller NI payments I think0 -
getmore4less wrote: »it is better to get is as a lump sum
Smaller NI payments I think
Correct - also leave payment until about September - otherwise you will pay higher rate tax on the bonus payment although this will trickle back through the PAYE system.0
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