other option is to make an AVC to your pension.Thank you for the reply its just a killer to pay that much tax on bonus
But you still pay tax on your bonusother option is to make an AVC to your pension.
Intensely frustrating to see the taxman snaffle more of your hard-earned bonus than you will see yourself. You can of course console yourself that the Government will spend your money wisely and efficiently. Can't you?your tax credits are apportioned over the year so your pay in the following month wont be impact however of that 12.5k you will see around 48% of it so 6k, as it will all be at your marginal rate plus prsi and usc.
Got my bonus a while ago and we were given the option of taking 500 of it as a voucher (one4all, me2you) which is tax free.
And don't vote for leftwing politicians
I was thinking the same under salary sacrifice rules, but it appears that it would still be exempt from income tax as a qualifying incentive. From TCA:If your bonus was, say, €1,000 and you were given the choice of the full bonus or a bonus of €500 and the voucher, would AAM (or more specially, would Revenue) consider that one would be accepting the voucher in lieu of pay?
how so?But you still pay tax on your bonus
Ah, yes you're correct.That's what I was getting at. If it's part of salary sacrifice, then it's not a qualifing incentive.
Okay yes, there is a tax saving. It applies to pension contributions of earned income regardless whether it's salary or bonus.how so?
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