Paying less tax with Bonus payment

hicham65

Hi All,

I received a bonus payment of £3543. My question is, I want to reduce the amount of tax I will be paying. Shall I spread the Bonus over three months or take it in one go?

Details below:
Tax code 1160L
Salary: £47,512
Currently paying 8% into pension
Bonus Payment: £3543


Thanks

chrisbur

hicham65 wrote: »

Hi All,

I received a bonus payment of £3543. My question is, I want to reduce the amount of tax I will be paying. Shall I spread the Bonus over three months or take it in one go?

Details below:
Tax code 1160L
Salary: £47,512
Currently paying 8% into pension
Bonus Payment: £3543


Thanks

As far as tax is concerned it will make no difference; the tax you pay will be decided by your taxable gross in month 12. However as far as national insurance is concerned you will be better off taking the bonus in one go as more of your earnings will fall above the upper earnings limit and so have NI at 2% instead of 12%.

hicham65

Thanks you