Northern Ireland Bonus Calculator
How Your Bonus Is Taxed in Northern Ireland
Bonuses in Northern Ireland are taxed through the UK PAYE system and follow the same tax rates and thresholds as England and Wales. Our calculator helps you estimate your take-home bonus for the 2024/25 tax year, factoring in income tax, National Insurance, pension contributions, and student loan repayments.
Income Tax via PAYE
HMRC treats bonuses as part of your total taxable income for the year. When a bonus is paid, your employer recalculates your cumulative income and applies income tax bands accordingly. This means a bonus received late in the year may push part of your income into a higher tax band, increasing the effective tax rate. For most employees, the personal allowance of £12,570 applies unless adjusted by your tax code.
Tax codes like 1257L, BR, or D0 help HMRC determine your entitlement to allowances. If you have more than one job or taxable benefits, a different tax code could apply to your bonus.
National Insurance Contributions (NICs)
Bonuses are subject to NICs in the month they are paid. In 2024/25, Class 1 NICs are charged at 8% on income between the Primary Threshold and Upper Earnings Limit. Since your bonus increases your income that month, you may owe significantly more NICs.
Pension Contributions
If your bonus is included in pension calculations, a portion may be deducted for your workplace pension. This reduces the gross income subject to tax and NI. Use the calculator’s pension input to see how this affects your net bonus.
Student Loan Repayments
Bonuses also affect student loan repayments. If you’re repaying under Plan 1, Plan 2, Plan 4, or a postgraduate plan, deductions are triggered when your monthly income—including your bonus—exceeds the repayment threshold. These deductions are made via PAYE and may be higher than usual in the bonus month.
Bonus Month and Year-to-Date Income
Timing matters. Bonuses paid early in the tax year may be taxed less heavily if your cumulative income is lower. Bonuses paid after you've already earned a large portion of your salary may be taxed more steeply. Our calculator factors in your bonus month and YTD earnings to provide accurate estimates.
Use this tool to better understand your bonus tax obligations in Northern Ireland and plan your finances accordingly—especially if your bonus is large or you’re paid irregularly.
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Do You Pay National Insurance on Bonuses in England?
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How Pension Contributions Affect Your Bonus in England
Got a bonus—but noticed it's smaller than expected? Pension contributions might be the reason. In England, workplace pensions often deduct a percentage of all income—including bonuses. While it may sting in the short term, there’s good news: these contributions are tax-efficient. Contributing from your bonus reduces your taxable income, potentially lowering your tax bill and boosting your retirement savings. For example, a 5% pension deduction on a £10,000 bonus means £500 goes into your pension—and you may pay less tax on the rest.
Student Loan Repayments on Bonuses in England
Bonuses are exciting—but if you’re repaying a student loan in England, they can also increase your monthly repayment. That’s because your bonus counts as income, and any earnings above the repayment threshold are subject to a 9% deduction under Plans 1 and 2. Whether it’s a £1,000 or £10,000 bonus, your repayment that month could spike—but only for that month. The good news? If your earnings drop the next month, so do your repayments.