Tax efficient ways of collecting a bonus

[What the]

Hi all,

About a year and a half ago most of the staff where I work were made redundant. I was kept on and as part of the restructuring I was asked to take over the running business. If successful I was to get a €50k bonus. I have been granted this bonus but now I am in a position where if I just take it as salary I give half of it to the taxman.

My question is what can I do to reduce this 25k tax hit on this amount. This is a one time only payment and will not re-occur so I want to make the best of it.

 

[44brendan]

No options. If you are on top rate of tax the bonus will be treated as additional salary.

 

[panindub]

Put some or all towards your pension, to avoid most tax.
Only problem you won't be able to access this money until you retire

 

[mandelbrot]

Put some or all towards your pension, to avoid most tax.
Only problem you won't be able to access this money until you retire

There are limits to how much an individual can contribute to a pension and avail of tax relief, so it's more likely to be some than all.

 

[capnhand]

Hi

Film Relief might save a few bob or two and also pensions.

Then if you want to do more risky things there is BES etc

Most tax solutions will require that you take a long term view or a certail degree of risk.

Bottom line though is that you are going to end up paying some degree of extra tax if you get a bonus of that size.

Kind Regrads

capnhand