Tax on Bonus

tosca1

Hi,

I have a question regarding a bonus payment.

My basic salary (22k) is paid monthly and in the bonus month I will receive an extra 1k which I know if received in my salary would end up being around £600.

However, my company are paying my bonus as a seperate payment. How much tax would I pay on this? It will be paid 5 days after my monthly salary.

Thanks

agrinnall

Chances are that you will pay 20% tax and 12% NI (which is the same as you would pay if it had been included with your salary). If it happend that your salary was paid in March and your bonus in April then you would be taxed less on the bonus as your April personal allowance would be applied to the bonus, but then you'd be taxed more on your April salary so you'd only have the benefit for a few weeks at most.

tosca1

Thanks.

Will I pay student loan on this also?

agrinnall

tosca1 wrote: »

Thanks.

Will I pay student loan on this also?

As far as I know (I'm too old to have needed one ) yes, you will pay student loan too. Assuming that's 9% then it will take the net down to around the £600 you mentioned originally.