Guide
Bonus tax explained UK
Why bonuses feel heavily taxed and how to estimate the real after-tax amount using annual pay logic.
Why the payslip can feel harsh
A bonus is not taxed under a special bonus tax rate in the annual model. It is added on top of your existing earnings, so the marginal slice may fall into higher tax bands.
National Insurance and student loans matter too
The gap between gross bonus and net bonus is not just income tax. Employee National Insurance and student loan deductions can also reduce what arrives in your bank account.
Why planning beats guessing
A simple comparison between salary alone and salary plus bonus is usually enough to estimate the after-tax amount for decision-making.