Tax and NI contributions on a bonus

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Alec_Eiffel_2
Alec_Eiffel_2 Posts: 193 Forumite
in Cutting tax
Hi everyone,

Quick question.

My net monthly pay is in the region of 77% of my gross monthly pay.

I have recieved a bonus in this months pay which I get taxed on etc. I've worked out that I'm only taking home around 67% of this bonus payment. Is this right? I assumed I'd take home 77% of it.
If this has been of any use please click on THANKS, it makes me look good.

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  • Bean_Counter
    Bean_Counter Posts: 1,496 Forumite
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    Without knowing any details of the amounts involved or your salary etc, 67% seems about right. Bonus would attract income tax at the rate of 22%, assuming this is your marginal rate, and 11% national insurance.

    If not sure ask your payroll department at work to double check.
    Today is the first day of the rest of your life
  • Alec_Eiffel_2
    Alec_Eiffel_2 Posts: 193 Forumite
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    That's great, thanks very much for your help Bean Counter.
    If this has been of any use please click on THANKS, it makes me look good.
  • robnye
    robnye Posts: 5,411 Forumite
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    also above a certain amount you would pay the extra 1% nat insurance plus possible 40% tax....
    smile --- it makes people wonder what you are up to.... ;) :cool:
  • Alec_Eiffel_2
    Alec_Eiffel_2 Posts: 193 Forumite
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    I'm in no danger of having to pay a higher rate of tax!
    If this has been of any use please click on THANKS, it makes me look good.
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