PAYE/Bonus question
Discussion
I have a question regarding how performance related bonuses get taxed. I have been offered a job paying £55K with a potential to get a 30% bonus at the end of the year.
Using my crude calculations I have worked that this would be a bonus of £16.5K.
The question I have is how will this get taxed? I have tried to use various tax calculators online and my interpretation of the results is below
Take home is £2.9K normally but if I got the bonus monthly (16.5/12= 1.37K)
The take home equivalent pay with the bonus would be £3.6K
I then took the difference between the bonus take home and normal take home giving me £674 extra a month. (674/1375=0.49)
So in reality that 16.5k would be taxed by 49%?
Can anyone help please?
Using my crude calculations I have worked that this would be a bonus of £16.5K.
The question I have is how will this get taxed? I have tried to use various tax calculators online and my interpretation of the results is below
Take home is £2.9K normally but if I got the bonus monthly (16.5/12= 1.37K)
The take home equivalent pay with the bonus would be £3.6K
I then took the difference between the bonus take home and normal take home giving me £674 extra a month. (674/1375=0.49)
So in reality that 16.5k would be taxed by 49%?
Can anyone help please?
Eric Mc said:
Try this free calculator.
Enter in the various amounts in the boxes on the left and the annual/monthly/weekly results appear in the boxes on the right.
Make sure you enter in the correct Tax Code details.
https://listentotaxman.com/
Hi Eric thanks for this, but I cant see the option for calculating tax on bonus?Enter in the various amounts in the boxes on the left and the annual/monthly/weekly results appear in the boxes on the right.
Make sure you enter in the correct Tax Code details.
https://listentotaxman.com/
This site provides this but its not really clear...
http://www.thesalarycalculator.co.uk/salary.php
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