UK pay guide
How UK bonus tax works
A bonus is usually added to your pay and taxed through PAYE. It is not a special “bonus tax”, but it can push part of your income into a higher tax band.
In short
The amount you keep depends on your total pay, tax code, National Insurance, pension arrangement and student-loan deductions.
Why the deduction can look high
PAYE applies the tax bands to your pay. If a bonus pushes part of your earnings above a threshold, that portion is taxed at your marginal rate. Employee National Insurance and student-loan deductions may apply too.
Pay-period effects
A bonus paid in one month can make that payslip look unusual, particularly with non-cumulative tax codes or variable pension deductions. Your year-end tax position is based on total annual income.
Pension contributions
Your employer may include or exclude bonus pay from pensionable earnings. Salary sacrifice and net-pay arrangements can affect the payslip differently, so check your scheme rules.
Use the UK bonus tax calculator for a planning estimate. See HMRC's PAYE Income Tax guidance for official rules.