DANIEL BAINES: Income tax and its effect on your year-end bonus

17 November 2019 - 00:03

It is commonly thought that a bonus is taxed at very high rates; this may be the case as the tax payable on a bonus does not take into account any of your available tax rebates or deductions, as they are already taken into account as part of the tax calculation on your normal salary.

The percentage of tax that you pay on your bonus depends on how much your normal salary is - if it is high, you will pay a high tax percentage on your bonus...

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