and i get a 1000 christmas bonus , will i be taxed on it and if so by how much?
2006-12-21 19:23:09 · 12 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
Assuming you are bearing the tax cost (i.e the employer has not designated a £1k bonus after deductions), your normal net pay is around £1,611 but this month's would be around £2,319.
The extra £1k suffers tax of £220 (22%) plus NI class 1 of £73 (most of the £1k is NICed at 11%, but £371 is above the upper earnings limit so only at 1%).
Hope this helps - there are a couple of assumptions (that you are not a company director and other, probably irrelevant stuff), but it should be a reasonable estimate.
2006-12-23 13:02:08 · answer #1 · answered by guido74 3 · 0⤊ 0⤋
Yes, of course you will get taxed. When in this country don't we get taxed? For everything??! (Cartoon in the paper this morning - a fog light tax...)
Seriously, though, you will get taxed, at the normal rate of tax that you pay. You'll also pay NI on it, and, if you have a work pension, a contribution to that will come off, too. Well, that's what happens with any bonuses I get, at any rate.
However, congratulations on getting a bonus, and have a Happy Christmas with it!
2006-12-21 19:34:28 · answer #2 · answered by bouncingtigger13 4 · 0⤊ 0⤋
It depends: Where in Mass? In a big city or a smaller area? How many years of experience were in the US? Is it exact experience? (same size company, same type work?) What type of engineer? (there are hundreds of different types) How long did it take you to find this job? How many better offers/worst offers have you received? Too many variable for anyone here to give you a true answer with the little info you have given us. Just keep in mind the unemployment statistic is BS and that there are many people in the US who used to make 6 figures and are now working part time for less than $15 an hour. Good luck
2016-05-23 14:13:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on the company, some companies make the bonus tax free so they give you more then 1000 so that after tax it equals to the bonus they promised.
It would be at the normal tax rate you pay.
2006-12-21 20:42:18 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Rates and Allowances - Income Tax
Income Tax Allowances Income tax allowances
2006-07 (£)
2007-08 (£)
Personal allowance
5,035
5,225
Personal allowance for people aged 65-74
7,280
7,550
Personal allowance for people aged 75 and over
7,420
7,690
Income limit for age-related allowances
20,100
20,100
Married couple's allowance * (aged less than 75 are born before 6th April 1935)
6,065
6,285
Married couple's allowance - aged 75 and over
6,135
6,365
Minimum amount of married couple's allowance
2,350
2,440
Blind person's allowance
1,660
1,730
Tax relief for the married couple's allowance is given at the rate of 10 per cent.
Taxable Bands Taxable Bands Allowances
2005-06 (£)
2006-07 (£)
Starting rate 10%
0 - 2,090
0 - 2,150
Basic rate 22%
2,091 - 32,400
2,151 - 33,300
Higher rate 40%
over 32,400
over 33,300
Happy Christmas
2006-12-21 19:29:12 · answer #5 · answered by Boscombe 4 · 1⤊ 1⤋
Your looking at a very rough figure of 25% total deductions, but you will still be charged at your normal tax rate as this does not take you into the higher tax band
2006-12-21 19:33:24 · answer #6 · answered by pete m 4 · 0⤊ 1⤋
Yes you will be taxed on it, treated as income, the rate of tax will be at the highest level of tax you normally pay, so if you are in the 40% bracket then will be taxed at 40%
2006-12-21 19:26:44 · answer #7 · answered by BobC 4 · 0⤊ 1⤋
Yes you will be taxed on it and it will be at the same rater you normaly pay tax. It is as far as the parasites in the tax office are concerned just part of your salary
2006-12-21 19:41:06 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Bonuses are taxed as income at the top rate that you currently pay. IIRC they also attract NI to your monthly limit if you are still below that.
2006-12-21 19:25:44 · answer #9 · answered by Oldbeard 3 · 2⤊ 0⤋
Yes you will be taxed on it and depending on where you live will depend on how much by. In the UK we are taxed at source 27 pence in the pound.
2006-12-21 19:25:23 · answer #10 · answered by The Alchemist 4 · 1⤊ 1⤋