hi all,

just wondered if the amount i get taxed will increase if i get a bonus at the end of the month? will it be a one-time tax increase and then back to normal next month?

never had a bonus before so i dunno what the deal is!

You'll pay tax & NI on it, it's no different to working overtime

Of course you will – it's an income tax. The way tax works is based on your overall income. If you are worried that the bonus will take you into the higher tax bracket then it's only incme above the threshold that is taxed at the higher rate. So a bonus is just treated as normal income for you and will be taxed (income and NI) accordingly.

Bikingcatastrophe – thats what i meant, i think it may shove me up to the next bracket – if i get one

thanks for the info!

beware the self assesment hassle that may follow after you've been bumped up a bracket

had nice bonus a few years ago, been on the self assesment list ever since and not managed to get off it.

bloody annoying if you ask me

thanks for the warning – but im expecting that much! just enough for a few extra beers probably!