Tax as a single person and bonus

B

brownsugar

Registered User
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Hi there,
Quick question regarding tax and a bonus.
I am taxed as a single person and get 34,752 per year.
I have a bonus next month of 1,665 and I'm wondering how much of it will I lose on tax?
I lost half of it last year and that was a shock to me.
I am living with my partner and two kids. He's working and getting about the same income as me also.
My questions are:
1.How much will I lose as a single person on my 1,665 bonus next month?
2. If i was married (taxed as a couple) how much would I lose on it?
3. If we were married would we save much over the year on tax e.g., getting taxed as a couple? Our salaries are about the same e.g., 34/35 per year.
Thank you for your help.
Brown Sugar.
 
You will pay Income Tax of 40%, PRSI of 4% and USC of 5.5% = 49.50%.

If both spouses earn more than €33,800 then there is no benefit for taxation purposes of being married.

Does your employer avail of the small benefit exemption.
 
Hi there, Thanks for that update. Ok so I will have to pay half of the bonus on tax? I don't think my employer has the small benefit exemption.
So there's no way out of paying the tax on the bonus so.
Yes we both earn more than €33,800 so no benefit than.
 
Is there some way to get the bonus as a voucher. Recall one got all had some promotion re tax benefit to employee
 
Can you get bonus added to your pension as an AVC? That would mean youd pay zero tax, assuming you're still under the allowed percentage contributions for marginal tax relief.
This obviously has down side of you not getting any cash in hand but saves you the tax.
 
username123 said:
Can you get bonus added to your pension as an AVC? That would mean youd pay zero tax, assuming you're still under the allowed percentage contributions for marginal tax relief.
This obviously has down side of you not getting any cash in hand but saves you the tax.
Click to expand...

While there is merit in what you say, there may be PRSI and USC due.
 
hi thanks for all replies. I don't have a company pension at all. I'm in my job for a number of years now and never took up the pension. I wish I had now but never bothered. Is there any point now as I'm almost 50? So it looks like I'll lose half of my bonus. Oh well.
 
I would certainly consider a pension, even at 50. It is tax-efficient saving and planning towards retirement.
 
point your employer at this - [broken link removed]

if you received €500 of your bonus as a voucher, it would be tax free, and you'd only pay tax on the remaining 1150.
 
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