Help Needed With Tax And Ni Deduction!

[Deskdiary]

If somebody has an annual salary of £90000, and then receives a bonus of £60000, what should the net amount of the bonus be after the deduction of Tax and NI?

Its not me (I wish!)

Thank you very much in advance

[fiction-factory]

The scheduling of deductions would depend on where we are in the tax year and the earnings pattern to date, but it would certainly push the tax into the 45% marginal rate bracket. Effectively somewhere between 40 and 45% of the £60000 would eventually go in tax.
I think the NI is limited to something like 1 or 2% at higher incomes.
Another factor would be if he put some or all into pensions and how much already goes into pensions.
And if it's a bank bonus there is sometimes an extra tax

[ukbod2015]

Approx £29,700 unless there is a recent rate change I`m unaware of.
Based on 40% Tax and 11% NI

[fiction-factory]

NI at 11% (or whatever the rate is now) stops at a ceiling of around £3000 a month or something like that and then falls to 1 or 2%.
I think the marginal rate here could be 45%,e specially as HMRC don't know yet that this extra sum isn't going to be a regular monthly payment

[ukbod2015]

i bow to your more current knowlege

[ubasses]

http://www.icalculator.info/salary_illustration/150000.html

This link will show breakdown of tax and Ni on salary of £150,000. Only look at the years figures as monthly will not apply as £60,000 will come as lump sum. As annual pay will be over £100,000 he/she will lose annual tax allowance.

[Deskdiary]

Thanks all

[New Judge]

I’ve not looked at the calculator but here’s my calculations:

On £90,000:

Income Tax = £25,403
NI = £5,071
Total = £30,474

On £150,000

Income Tax = £53,643
NI = £6,271
Total = £59,914

Therefore deductions from the £60k bonus = £29,440

Things to remember:

- The Personal Allowance (£10,600) is reduced by £1 for every £2 earned above £100,000. (This means earnings between £100,000 and £121,200 are taxed at a marginal rate of 62%).

- There is no upper earnings limit which sees NI deductions cease. Earnings between £8,060 and £42,385 are subject to 12% deduction. All earnings above that amount are subject to NI deductions at 2%.

[fiction-factory]

That looks good, NewJudge. I hadn't factored in the reduction in the personal allowance (I do dislike fiddly tax rules like this). Thanks for clarifying the point at which NI falls to 2% (it used to affect me 10 years ago so I knew it then).
Your answer is very close to UKbod's 'broad brush' calculation figure so maybe all these tweaks to rates don't actually make much difference.
The lucky recipient of the bonus will also need to factor in any pension contributions and income from investments