Can anyone help me work out how much bonus I will actually take home

[holymoleyitus]

I'm in a very lucky position that our company has decided to award bonuses this year. I've been informed today that my bonus will be £2500. But I'm trying to work out how much of that I will actually take home.

For reference I earn approx 40k per year, pay student loan on plan 1 and pay the minimum pension contribution.

Your best bet is to use salary calculator online. You can select your student plan, tax code, bonus amount, pension contribution etc and I’ve always found it to be within a few ££s of what I actually get

This is assuming 40k plan 1 student loan, tax code is the regular 1257l, not taking into account pension contributions.

Thank you

I reckon your take home pay will be about £3700 the month your bonus is paid.

Provided that pension contributions are 5%.

You need to check if your bonus is pensionable - they aren’t always (ours aren’t).

Hi, I would work in the basis of 41% being deducted from your £2.5k, so in theory you will have an extra £1,475 cash in hand come payday.

41% comprised of 20% tax, 12% NIC and 9% student loan.

This assumes no additional pension contributions, you are not in Scotland(different tax rate) and also that you have no other sources of income that push you into the higher rate tax bracket.

This is broadly in line with Magentas snip above, with the main variation being the NIC being more in my calculation, as I have not fully considered the fall in NIC from 12% to 2% when the monthly upper limit is exceeded.

I would recommend The Salary Calculator.

You can type all your info in, including tax code, deductions, bonus or overtime and you'll get a net anount. It's always been pretty accurate for me, within £20 or so.