Do bonuses get taxed at 20% or 40%?

If I get a bonus this year my yearly income would take me into the threshold of having to pay 40% tax but my actual salary is still taxed at 20%

I’m just trying to figure out whether my bonus will be taxed at 40% or 20%

Reply 1

ReadingMum

any income - salary or bonus - above the threshold will be taxed at 40%. The taxman doesn't distinguish

Reply 2

mnot

Universities Forum Helper

All the income above the threshold of your cumulative compensation (i.e. base salary + bonus) will be taxed at the higher rate, all the income below the threshold at the lower rate.

Reply 3

Blue_Cow

Original post by Amydesigns1104

40%.

Salary sacrifice more into your pension if you can to bring your total annual income below the 40% bracket and you should get a refund from HMRC at the end of the tax year.

(edited 5 months ago)

Reply 4

Zarek

The amount you earn above the higher rate threshold in the full tax year will be taxed at 40%. So if all of your bonus is in the salary area above the higher rate income you will pay 40%. PAYE is calculated each monthly payment period so the amount of tax you pay in the month you get the bonus will be proportionally higher. So at the end of the tax year you should have paid roughly the right amount of tax. However you may also need to complete a self assessment for final adjustments