Can a bounty finder 'bonus' increase the amount I pay back in student loan?

caffpilch7

Hi, I am new to this....so am curious if anyone will be able to help!

I recently got one of my friends a job where I work and my company agree to pay me a bonus of £750 for finding the person. Work have payed my money on to my pay roll silp and as such it has been paid to me as my wages. I understand that this money is taxable as it is a bonus, how much percentage does it get taxed?

Also as a result of getting paid the bonus in my pay slip, my student loan payment has gonje up from the usual (already high) £60 a month, to £142!!!!! I really wanted to see if this is allowed - as the money is a bonus and isn't my regular earnings.

So of the £750 I was supposed to get, I actually took home £400 of it! Which is obv very nice, but I don't understand why so much of it was taxed and given to student loans.

Is there some way to claim some of it back?

Cheers
Catherine

CrispyUK

The tax on any bonus works in the same way as tax on your regular wages. If your annual salary is over the threshold (£5,000 something) then you will be taxed on the full amount of the bonus, either at 22% or at the higher rate of 40% if you earnings put you into this tax bracket.

The student loan payments work in a similar way, repayment is a percentage of your earnings which are over the £15,000 annual threshold. This is calculated on monthly basis so any of your earnings over £1,250 per month, will have a 9% student loan repayment taken from them. As you're repaying every month then the full bonus amount will be subject to 9% going on your repayment.

Plus there's also the national insurance contributions which is another 11% off your bonus.

So that's how your £750 bonus turns into £400ish as take-home, sucks I know!