Tax on Bonuses

Marshyman

Hi

looking for some advice regarding how tax is applied to bonuses,

Basically my work have announced they will be changing the bonus pay out frequency from every 3 months to every 6 months,

My Basic is £29,000 with current Quarterly bonuses of £2200

Will the fact i will now be paid £4400 every 6 months make any difference to the amount of tax that i pay overall accross the year?

Im sure it will even itself out but ive never been great with tax and how its worked out on bonus payments!

thanks

chrisbur

Marshyman wrote: »

Hi

looking for some advice regarding how tax is applied to bonuses,

Basically my work have announced they will be changing the bonus pay out frequency from every 3 months to every 6 months,

My Basic is £29,000 with current Quarterly bonuses of £2200

Will the fact i will now be paid £4400 every 6 months make any difference to the amount of tax that i pay overall accross the year?

Im sure it will even itself out but ive never been great with tax and how its worked out on bonus payments!

thanks

The amount of tax you pay in the year will not alter; though depending on when the bonus is paid and how often you are paid, you might pay extra and get this back in the following payment(s).
It will affect your national insurance payments though with more of your bonus falling over the upper earnings limit so if you are paid monthly you would be about £220 better off if this tax year you had two £4400 bonus payments instead of 4 £2200 payments.