Quizzes & Puzzles8 mins ago
How much tax on a �10K bonus??
2 Answers
Anyone know how much tax I will pay on my �10K bonus?
Also got a payrise, does anyone have a formula whereby I can work out my monthly take home pay?
Thanks in advance
Miss
Also got a payrise, does anyone have a formula whereby I can work out my monthly take home pay?
Thanks in advance
Miss
Answers
Best Answer
No best answer has yet been selected by MissTrery. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.The following assumes that your bonus is paid before the end of the current tax year:
If your total income (including the bonus), during the 2007/08 tax year, doesn't exceed �39825, you'll pay 22% tax on the bonus. If your income, before receiving the bonus, already exceeds �39825, you'll pay 40% tax on the bonus. If you were receiving less than �39825 before the bonus, but the bonus takes your income over that amount, you'll pay 22% tax on the part that takes you up to �39825 and 40% tax on the rest.
You'll also pay National Insurance on the bonus. For any part of the bonus that takes your total annual income up to �34840, you'll pay 11% NI. For anything above that, you'll only pay 1% NI.
I could type out loads of complicated details about how to calculate your take home pay but it's far simpler to suggest that you use this online calculator:
http://www.thesalarycalculator.co.uk/salary.ph p
Chris
If your total income (including the bonus), during the 2007/08 tax year, doesn't exceed �39825, you'll pay 22% tax on the bonus. If your income, before receiving the bonus, already exceeds �39825, you'll pay 40% tax on the bonus. If you were receiving less than �39825 before the bonus, but the bonus takes your income over that amount, you'll pay 22% tax on the part that takes you up to �39825 and 40% tax on the rest.
You'll also pay National Insurance on the bonus. For any part of the bonus that takes your total annual income up to �34840, you'll pay 11% NI. For anything above that, you'll only pay 1% NI.
I could type out loads of complicated details about how to calculate your take home pay but it's far simpler to suggest that you use this online calculator:
http://www.thesalarycalculator.co.uk/salary.ph p
Chris
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