Tax on bonus

Seanachai

Hello , I'm just wondering if anybody here would know what would be left of a €500 bonus paid with the monthly wage for a person earning below €25,000 in the 20 % tax bracket?.

namenotavailablE

Try my net pay calculator spreadsheet for this query- see the link in my signature (if you're logged in to Boards). If not logged in, it's available from the 'About me' tab of my profile

Seanachai

Thanks , I tried opening the file and I also downloaded the file but I can't unzip it and view it in Excel.

Geuze

The marginal tax rate on single people earning up to 32,800 is 20%.

So you pay 20% income tax on the 500 bonus., assuming all your tax credits are used up.

You would also pay USC tax on the 500 bonus.

Seanachai

Fair enough , around €300 was what I was thinking , it'll come in handy. It'd be great if they could find a way of paying us the bonus separately and avoid the tax. I remember reading recently about London bankers avoiding tax on their bonuses using some workaround of buying sheds of hay which are exempt from tax and laundering the money somehow.

namenotavailablE

Seanachai wrote: »

Thanks , I tried opening the file and I also downloaded the file but I can't unzip it and view it in Excel.

It isn't a zipped file but sometimes if you try to download it using Internet Explorer it is treated as being zipped. See this link about downloading it using Internet Explorer.

bumper234

Seanachai wrote: »

Fair enough , around €300 was what I was thinking , it'll come in handy. It'd be great if they could find a way of paying us the bonus separately and avoid the tax. I remember reading recently about London bankers avoiding tax on their bonuses using some workaround of buying sheds of hay which are exempt from tax and laundering the money somehow.

I used to work for a company that paid us our bonuses in shopping vouchers for Blanchardstown. It's up to you then to declare this to the tax man as we did us bein good citizens and all;) Not sure if this is still the case though.

namenotavailablE

It's perfectly fine to receive a maximum of €250 in vouchers in a once-a-year transaction without having any tax issues- see here

Note that this doesn't apply if you receive the vouchers in multiple transactions (e.g. a voucher of €100 followed by a voucher of €150 would cause the second voucher to be taxable)

Citizenpain

a voucher for 250 can be given once a year tax free

"small benefits exemption"

bumper234

namenotavailabl wrote: »

It's perfectly fine to receive a maximum of €250 in vouchers in a once-a-year transaction without having any tax issues- see here

Note that this doesn't apply if you receive the vouchers in multiple transactions (e.g. a voucher of €100 followed by a voucher of €150 would cause the second voucher to be taxable)

We used to get 500 600 700 and that was pounds lol but yeah they told us that we were supposed to declare to the tax man. as i say it prob changed since then and now company has to declare i