How much will my bonus be after tax?

onthecoast

Hi all,

I currently make around £45,000/yr without bonuses.
I will be getting my first bonus in February which I have been told is £25,000.

If my calculations are correct I will pay on my bonus:

Tax: 40% * £25,000 = £10,000
NI: 12% * £25,000 = £3,000

Total paid on Bonus = £13,000

Net bonus in my account = £12,000

Would I be correct in assuming this?

Thanks for the help

CLAPTON

onthecoast wrote: »

Hi all,

I currently make around £45,000/yr without bonuses.
I will be getting my first bonus in February which I have been told is £25,000.

If my calculations are correct I will pay on my bonus:

Tax: 40% * £25,000 = £10,000
NI: 12% * £25,000 = £3,000

Total paid on Bonus = £13,000

Net bonus in my account = £12,000

Would I be correct in assuming this?

Thanks for the help

no


40% tax
2% NI

[Deleted User]

Hi,

try this wee gadget, see what it says, do it for £45K then £70K.

agrinnall

What CLAPTON said. And of course, because all of the bonus will attract higher rate tax this is an excellent opportunity to reduce your tax bill by making additional payments into your pension.

[Deleted User]

Hi,

well, using wee gadget in #3,

£45K: tax £7822, NI £4114, deductions, £11936,

£70K: tax £17822, NI £4614, deductions, £22436,

difference £10500.

Clapton: 40% tax 2% NI,

£25K: tax £10000, NI £500, deductions £10500.

Correct.

Well done. :T

chrisbur

[Deleted User] wrote:

Hi,

well, using wee gadget in #3,

£45K: tax £7822, NI £4114, deductions, £11936,

£70K: tax £17822, NI £4614, deductions, £22436,

difference £10500.

Clapton: 40% tax 2% NI,

£25K: tax £10000, NI £500, deductions £10500.

Correct.

Well done. :T

On this occasion Listen to Taxman gave the correct answer but often when a bonus is paid this site will not give the correct answer so cannot always be relied on. For example had the OPs normal gross been below the upper earnings limit then the NI figure given by Listen to Taxman would have been wrong also if the bonus is paid early in the tax year it will give the correct yearly tax figure but will not show that tax deducted is higher when the bonus is paid and some of this tax is then refunded as the year goes by.