Tax on bonuses

sophlowe45

I'm trying to find out if there is a way to save your bonus from being taxed...there is if you put it into yuor pension but are there any other ways such as if you invest it in a certain way?

CLAPTON

nothing special about bonuses.. same rules apply as to ordinary income.

so yes if you put ordinary income into a pension then it isn't taxed , just like bonus income (although it may depend upon your pension scheme).

monkeymax

depending on the amount of income you could place it into an ISa. This will give you interest on top and it will remain untaxed

Innys

monkeymax wrote: »

depending on the amount of income you could place it into an ISa. This will give you interest on top and it will remain untaxed

Just to be clear, in this scenario, it is received NET of basic rate tax and then placed in an ISA. The subequent returns on the deposit will be tax free.

To my knowledge, like any other source of income, the only way to receive the bonus amount gross is to pay it into a qualifying pension scheme.