Tax bonus

Keynesfun

Hi all, 
I earn 60,000 a year 
I got 9% bonus (5,400) 
what would my take home pay in that month 
I’m wondering is it 40%  or 20%

Anyone have an idea 

BoGoF

Not enough info to say. You say you earn £60,000, what is taxable pay, do you pay into a pension/salary sacrifice Also depending on what month (you haven't said) it was paid, it could be a combination of 20% and 40%.

[Deleted User]

If the taxable salary has been above £4189 every month since April the tax due on the bonus will be £2160 - all at 40%. NIC of £108 will also be payable. 

If not we need to know when the bonus is paid and the taxable salary up to and including the month prior to that date.

Keynesfun

Hi pension is £250 a month 
so 10,400 in total pay for December (4 days time )
does the 12,500 non taxable have anything to do with it 

Keynesfun

Does the 12,500 come of so then I’m taxed on £47,500 

BoGoF

Keynesfun said:

Does the 12,500 come of so then I’m taxed on £47,500 

Yes, but it's spread over a 12 month period. Is the pension deducted from gross pay before PAYE is applied, i.e. does your payslips show a gross and a taxable figure - are they the same or different. If you have received your payslip then it is highly unlikely it is incorrect.

[Deleted User]

If the pension is £250 per month, regardless of the methodology, you are a higher rate taxpayer. My previous post outlines the position. 

Keynesfun

I get taxed then my £250 comes out 

[Deleted User]

Keynesfun said:

I get taxed then my £250 comes out 

Your net pay, with the bonus, will be £3132 higher than in the previous month. 

Keynesfun

so it’s 40% tax then ok thanks 

Albermarle

Keynesfun said:

I get taxed then my £250 comes out 

Just a bit off topic, adding just 5% a year to a pension will not result in you have a very good pension when you retire. As a higher rate taxpayer, pension contributions get 40% tax relief, which is a very generous deal and you should most probably take more advantage of it.