Can anyone explain take home pay in bonus month?

Mr_Dangermouse

I am on a salary of around £35k and have been lucky enough to have been awarded a bonus of just over £2,250 payable in my next pay. This is gross of deductions so I'm curious to see how much of this I can actually expect to pocket.

With my current tax banding and my student loan being from repayment plan 1 I'd expect to be paying 20% tax on the bonus, 12% national insurance and 9% student loan, therefore I don't expect to keep 59% of the amount, or around £1,330 in monetary terms.

However I ran the numbers through the salary calculator and they have my next take home pay being £1,475 higher than usual.

Am I missing something?

Dazed_and_confused

You have probably hit the National Insurance limit where deductions drop to 2%(?).

Can work out very beneficial for one off payments.

antrobus

Mr_Dangermouse wrote: »

Am I missing something?

Like the man (?) said, it's probably the Upper Earnings Limit (UEL) as in £3,750 a month;

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

that should save you £150 or so.