Fill in the figures, then click Work out my bonus.
Result
What each share of the bonus into your pension does
| Share to pension | In hand | Into pension | Tax | NI | Loans | Child Benefit charge |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: one employee on a standard tax code in England, Wales, Northern Ireland or Scotland: income tax with the personal allowance taper, employee National Insurance, Student Loan Plans 1, 2, 4 and 5 and Postgraduate Loan, the High Income Child Benefit Charge, and a bonus partly paid into a pension by salary sacrifice.
- Gives: what you keep of the bonus, the effective rate on your last pound, the amount that wins back your personal allowance, and a table of 0 to 100% of the bonus into your pension.
- Not decided: other tax years, other tax codes, second jobs, benefits in kind, the pension annual allowance and carry forward, what your employer allows, and anything that changed after this was written.
Common questions
How much tax do I pay on a bonus in the UK?
A bonus is taxed as ordinary pay in the year you receive it, so it is added to your salary and taxed at your marginal rates plus National Insurance: 20% or 40% income tax in England, with 8% NI up to £50,270 and 2% above, and any student loan on top. A £10,000 bonus on a £55,000 salary leaves about £4,900 once income tax, NI and a Plan 2 loan are taken.
Why does my bonus feel taxed at 60% or more?
Between £100,000 and £125,140 of income, the personal allowance is withdrawn at £1 for every £2, which makes the effective income tax rate 60%. Add 2% National Insurance and a student loan and the last pound can be hit at 71% or more. A bonus that carries you across £100,000 loses part of its value this way.
Can I pay my bonus into my pension to avoid tax?
Often yes, if your employer allows it. Paying part of a bonus into a pension by salary sacrifice avoids income tax and employee National Insurance on that part. Sacrificing enough to bring your income back to £100,000 restores the personal allowance, so the effective relief on that slice can be 60% or more. It must normally be arranged before the bonus is awarded.
Does a bonus affect Child Benefit?
Yes. The High Income Child Benefit Charge claws back 1% of your Child Benefit for every £200 of adjusted net income between £60,000 and £80,000, and all of it above £80,000. A bonus that lifts your income into that range can cost hundreds of pounds, and a pension contribution reduces adjusted net income.
Why did my payslip tax look higher than this?
Employers usually withhold tax on a bonus through PAYE using your tax code and your pay so far in the year, which can over-withhold in the month and settle later. This tool shows the annual result. Any difference is corrected through your tax code or Self Assessment.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.