Help with calculating take home bonus please

AngelaUK

This is the first year where my bonus is going to push me into the 40% tax band including my gross salary.

Current basic is £36,850 bonus paid this month will be £8,500 so any idea what I might take home this month after tax and NI?

Then to further complicate basic will go up to £38,150 in January so will I pay 40% on some of this Jan-Mar due to the bonus?

zygurat789

AngelaUK wrote: »

This is the first year where my bonus is going to push me into the 40% tax band including my gross salary.

Current basic is £36,850 bonus paid this month will be £8,500 so any idea what I might take home this month after tax and NI?

Then to further complicate basic will go up to £38,150 in January so will I pay 40% on some of this Jan-Mar due to the bonus?

You may be paying 40% tax as opposed to 20% but you will only be paying 2% NI as opposed to 12%.
As to how much you will take home that would not be possible because you have not provided your code number.

AngelaUK

zygurat789 wrote: »

You may be paying 40% tax as opposed to 20% but you will only be paying 2% NI as opposed to 12%.
As to how much you will take home that would not be possible because you have not provided your code number.

My code is 944L

shop-to-drop

I'll leave calculations to the experts but if you pay into a pension you may still not be quite into the higher bracket yet.

chrisbur

Quick calculation
9/12 of taxable salary of 36850 is 27637
add 8500 to get 36137
freepay on 944L at month 9 is 7086
36137 less 7086 is 29051
basic rate band to month 9 is 24007
so 24007 at 20% is 4801
29051 less 24007 is 5044 at 40% which is 2018
4801 plus 2018 is 6819
so tax due as at month 9 is 6819 from which deduct tax paid to date on month 8 payslip and you have tax for month 9


NI assuming A rate a shade under 500

nomunnofun

Good stuff chrisbur - of course the other thing that the op has not mentioned is whether or not her gross salary is pensionable and, if so, the rate of contribution and whether the quoted amount is before or after pension contributions.

chrisbur

nomunnofun wrote: »

Good stuff chrisbur - of course the other thing that the op has not mentioned is whether or not her gross salary is pensionable and, if so, the rate of contribution and whether the quoted amount is before or after pension contributions.

Indeed not so I assumed no pension.

AngelaUK

nomunnofun wrote: »

Good stuff chrisbur - of course the other thing that the op has not mentioned is whether or not her gross salary is pensionable and, if so, the rate of contribution and whether the quoted amount is before or after pension contributions.

I only have work paying into pension at the moment, not paying in myself as mortgage on high fixed rate until August so need all the pay I can get

AngelaUK

What from I can work out in Jan I should pay less tax that month, using the formulas above?

chrisbur

AngelaUK wrote: »

What from I can work out in Jan I should pay less tax that month, using the formulas above?

That is correct. The amount that you can earn before 40% tax is due goes up by 3454 each month but your salary is 3179, this means that each month 275 moves from having been paid at 40% to being due at 20% so you get a bit of a tax reduction to correct for this. This continues until the tax year ends.

opinions4u

Will your employer increase their contribution if you start paying into the pension scheme yourself?

You could get a double benefit of 40% tax relief and uplift of employer contributions.

Think beyond the short term.