Tax on bonus query

Tasmond

It seems the older threads have old tax codes on them.

If I earn 20k a year and get a 1100 pound bonus in a quarter and get paid it at the end of April, what will I pay in tax and take home?

Will I pay a whopping tax then have less tax than usual in the coming months?

Confused!

Bluebirdman_of_Alcathays

Bonus is treated no different to salary - you'll pay income tax on (20000+1100) = 21100 annual income.

agrinnall

Actually I think the calculation is 20000 + (4 x 1100) = 24400. You will pay more tax (£220 more, plus extra NI) in the months when your bonus is paid, but in the other months you'll just pay the tax due on your basic pay.

Shedman

Tasmond wrote: »

It seems the older threads have old tax codes on them.

If I earn 20k a year and get a 1100 pound bonus in a quarter and get paid it at the end of April, what will I pay in tax and take home?

Will I pay a whopping tax then have less tax than usual in the coming months?

Confused!

If it's just a one off bonus and is paid in April then it won't get added to your 2015-16 earnings but will get added to your 2016-17 earnings as it is date of payment (in most instances) that is the relevant date. You'll have extra National Insurance (13.8% in 2016-17) on it as well so overall on your £1100 you'll 'lose' just over a third - around £370

[Deleted User]

Shedman wrote: »

If it's just a one off bonus and is paid in April then it won't get added to your 2015-16 earnings but will get added to your 2016-17 earnings as it is date of payment (in most instances) that is the relevant date. You'll have extra National Insurance (13.8% in 2016-17) on it as well so overall on your £1100 you'll 'lose' just over a third - around £370

NIC still 12% for 2016/17. Employers pay 13.8%

Shedman

[Deleted User] wrote:

NIC still 12% for 2016/17. Employers pay 13.8%

Thanks. I stand corrected - looked at the wrong NI rates table (so total deduction would be nearer £350 than £370)