How can I work out my Bonus After Tax?

MDK

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So my salary is 31075 with tax code 881L, My gross pay to date is 24505 and I have been told im being paid a £3700 bonus.

My calculations work out at 27% giving me £2701, am I right?

NYM

Try this link. http://www.uktaxcalculators.co.uk/

MDK

NYM wrote: »

Try this link. http://www.uktaxcalculators.co.uk/

hmmm, that works it out as 32% when my wage is 26%

SandraScarlett

MDK wrote: »

So my salary is 31075 with tax code 881L, My gross pay to date is 24505 and I have been told im being paid a £3700 bonus.

My calculations work out at 27% giving me £2701, am I right?

Your code number, 881L, means you're given £8810 Free Pay, which means you don't pay any tax on that. The Free Pay is divided so that you get 1/12 of this amount allowed each month. As your salary exceeds your free pay it means you'll pay tax on your whole bonus.


You'll pay 20% tax, so on £3700 you'll pay £740 tax, giving you an extra £2960, though I don't know the NI rates, and you'll probably pay more than you usually do.


Well done on getting your bonus, and I hope you'll enjoy spending it. :beer:


xx

[Deleted User]

MDK wrote: »

hmmm, that works it out as 32% when my wage is 26%

You will lose 32%.

You will pay 12% NI and 20% tax.

Your tax and NI free pay will already be used up on your normal basic pay, which is why that comes out as a lower percentage.

MDK

Thanks for all your responses

zagfles

Deleted_User wrote: »

You will lose 32%.

You will pay 12% NI and 20% tax.

Your tax and NI free pay will already be used up on your normal basic pay, which is why that comes out as a lower percentage.

No he won't. The bonus will take him way above the NI UEL which means he'll pay 2% NI on some of it. Also it could temporarily push him into higher rate tax though this will get refunded in later months.

OP - for an accurate answer need to know how often you get paid (weekly/4-weekly/monthly) and the pay period of your last payslip.

Most online tax calculators are rubbish and can only cope with pay that's evenly spread throughout the year. They won't give you the right answer.

NYM

Gross Pay

• Annual £31,075.00 (Mth)£2,589.58 (Wk) £597.60

Tax free Allowances

• Annual £8,819.00 (Mth) £734.92 (Wk) £169.60

Total taxable

• Annual £22,256.00 (Mth) £1,854.67 (Wk) £428.00

Tax due

• Annual £4,451.20 (Mth) £370.93 (Wk) £85.60

National Insurance

• Annual £2,799.24 (Mth) £233.27 (Wk) £53.83

Total Deductions

• Annual £7,250.44 (Mth) £604.20 (Wk) £139.43

Net Wage

• £23,824.56 (Mth) £1,985.38 (Wk) £458.16

With your bonus of £3700, your new Annual Gross Income would be £34,775.00 (after sacrifices)

You would owe additional tax of £740.00

You would owe additional National Insurance of £444.00


Out of curiosity...why is your year to date figure £24505 ?

zagfles

NYM wrote: »

With your bonus of £3700, your new Annual Gross Income would be £34,775.00 (after sacrifices)

You would owe additional tax of £740.00

Correct, though as I said above he may go into 40% tax temporarily, though this will be refunded in later pay periods.

You would owe additional National Insurance of £444.00

Wrong. As I said above the bonus will push him way above the NI UEL. NI works on a pay period basis not an annual basis so if you annualise everything you get the wrong answer. Most of the bonus will be subject to the 2% rate of NI.

If the OP gets paid monthly the bonus will push his pay up from about 2590 to 6290 that month, the NI UEL is £797pw ie about £3454pm, so he'll pay 12% NI on £864 of the bonus and 2% NI on the rest ie £2836. Making only £160 in NI, not £444!

The NI will be even less if the OP gets paid weekly or 4-weekly.

NYM

zagfles wrote: »

Correct, though as I said above he may go into 40% tax temporarily, though this will be refunded in later pay periods.

Wrong. As I said above the bonus will push him way above the NI UEL. NI works on a pay period basis not an annual basis so if you annualise everything you get the wrong answer. Most of the bonus will be subject to the 2% rate of NI.

If the OP gets paid monthly the bonus will push his pay up from about 2590 to 6290 that month, the NI UEL is £797pw ie about £3454pm, so he'll pay 12% NI on £864 of the bonus and 2% NI on the rest ie £2836. Making only £160 in NI, not £444!

The NI will be even less if the OP gets paid weekly or 4-weekly.

You are indeed correct...:D
I apologise to the OP for giving the wrong info !