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View Full Version : Income tax on bonus.

Phoenix_
24-01-2007, 01:15 PM
Does anyone know how much (as a percentage) i will get taxed on my bonus ?
Kermit
24-01-2007, 01:44 PM
The usual tax bands apply.
Phoenix_
24-01-2007, 01:53 PM
Ive got no idea what they are and really busy at work to bother looking. :p

Can you find them for me please !? :D

*begs*
Wyetry
24-01-2007, 02:04 PM
clicky (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015566)

you need to add your tax free allowance onto the actual bands though - so it pushes teh 40% tax band further up towards £40K.
Phoenix_
24-01-2007, 02:11 PM
thanks....but i really am stupid at the whole taxes thing. I fall into the 2nd category (between 2K and 33K).

Does it mean i will have 10% of my bouns stolen by them ??

:blush:
Wyetry
24-01-2007, 02:41 PM
No 22%

But it works like this the first 5K you don't get taxed on - then for the next 2K you get taxed at 10%

Then for everything you earn above that you get taxed at 22%

I have made you a file - to work out how much you will get taxed on it change the ammounts for your current salary and bonus.

However my brain wont' allow me to work out how much you need to pay if it pushes you over into the 40% bracket - I may well have a think and revise - clearly i'm putting off writing a not very nice email...
Phoenix_
24-01-2007, 03:25 PM
Leg end ¬!!!! :thumb:
purplebutterfly
24-01-2007, 09:23 PM
Sorry to be a pain Wytrey, but dont forget the 11.5% (I think!) NIC and any student loan at 9% if phoniex has one. Good spreadsheet though.
Wyetry
25-01-2007, 12:11 PM
Your totally right i rememberd that in the shower this morning well about the NIC not the student loan because i'm only old student loan system! I'm such a nerd i've been thinking about how to make the spreadsheet work perfectly as well - If I get bored at lunch time I may revise it!
purplebutterfly
25-01-2007, 09:23 PM
Your totally right i rememberd that in the shower this morning well about the NIC not the student loan because i'm only old student loan system! I'm such a nerd i've been thinking about how to make the spreadsheet work perfectly as well - If I get bored at lunch time I may revise it!
The fact I remembered the percentages as well is really bad, all the payroll I do is fully automated. :o