Bonus Tax Calculator UK

Net bonus after tax and NI at your marginal rate.

Result

Tax on bonus-£1,000.00
NI on bonus-£400.00
Net bonus£3,600.00
Effective rate28%

Bonus Tax Calculator UK — FAQs

How is a bonus taxed in the UK?

As ordinary income at your marginal rate — via PAYE it can look overtaxed in month one (annualised) but self-corrects. At £40k salary a £5k bonus loses ~28% to tax+NI.

Why is my bonus taxed so heavily?

PAYE annualises the bonus month, pushing you into higher bands temporarily. It self-corrects via HMRC reconciliation or self-assessment.

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