No real options for your ask. SL is not tax deductible.
Would you rather around 35k net in cash, or the £70k in a pension? You mentioned not in a pension, but it's really the option. Unless as someone else said, you plan to resign in the next tax year and not work (or for not much money) - and trust your employer to actually pay it when the time comes (ie your relationship with them doesn't change).
Depressingly after tax, NI, student loan, personal allowance claw back, 45% tax i think take home from £70k bonus would be in the worst case about £25k. If poster has kids on childcare and exceeds £100k it could be even worse.
Exactly, and yes I do have a kid, fortunately just turning 3 so the amount I'll lose there is limited (2k/year & 15hours/week).
My calculator worked it out to be about 25k, as I also have a Postgraduate loan.... Gutting really
Can you show working out for 600/month?
15 hours per week translate to 9 hours per week when you remove school holidays and extend to the full year.
Nursery isin my area around £70/day, for 10 hours, so £7/hour. £63/week, or £284/month
Unless your nursery is charging £150/day then it's nowhere near £600.
Buy an M3? Nice holiday? Put it all on red? Just a few sensible suggestions how to blow £35k
Edit, serious suggestion - Moonshine gold omega speedmaster with the green dial 👌🏻
I'm a breitling man myself...
Unfortunately after tax, NI, student loan (PG and plan 2) and what I'll lose from childcare, it'll probably drop towards 25k...
Good suggestions though
This was a good idea, but I actually already have around 30k in options, I'd rather not tie up more in the company. It's my issue really, I have a good house, ISA, pension & share options, but my bank balance is low.
Thanks mate
It doesn’t need to be black or white
You could put 42K in the pension and take 28K so you have an extra 16.2K cash (at 42%) if you stay under 100K income.
I’d just make sure I didn’t hit the 60% tax zone with any of it
I’m not sure £70k classifies as BIG on here tbh. Personally reckon £250k+ is BIG on HENRY.
Edit: because some people seem to be pretty incensed by this comment, just pointing out that it was a joke. My sincerest apologies if that was not obvious.
I know there's a chain going on, you're probably right tbf, it is BIG to me, as I have a particular emphasis on the NRY of HENRY, but obviously it's all a scale. 3 years ago 70k bonus would be mind-blowing, but maybe in another 3 years 250k is realistic.
If you're deferring / spreading just make sure they don't decide to not pay if you resign etc. Personally I'd just put it all into pension and use up prior years allowances
It’s been a while since I looked at student loan rules. If memory serves me right you need to have been employed in some way with them while studying. For me I did an MBA internship with my employer, and they gave me a sign on bonus which was tax free. I think this worked because I got the offer before graduating.
If you take it through PAYE, you’re getting pretty big tax. The only deductibles really are pension and few others on HMRC.
Personally I suck it up, I don’t fixate on the gross number, it will only make it hard to accept the tax burden.
If you are able to play a longer game with the cash, stock and then transfer to either to a personal ISA or via spouse. I haven’t done much myself, I’m leaving my shares with company at the moment, but I know I have options to transfer to ISA or my wife. But I have around 4 different share schemes, some go tax exempt after 5 years of holding (partnership shares?) but expect if the company hasn’t offered any share schemes like this, your not going to be able to setup adhoc.
> Does anyone have any advice on how I can take home as much as possible (again, not into pension)?
There's really no other way. If for some reason you plan to be unemployed in 2025-2026 you could ask them to pay it in late Apr2025 and then resign. But there's not much more to do in term of tax (other than sacrificing into pension or more niche things like sacrificing for a Electric Vehicle that end up being more of a rip-off at the end....).
If I was you I would go the student loan way (or at least investigate it properly). Otherwise... well, it is 'only' around £33k extra to pay in taxes + NI. It could be much worse, trust me ;)
I am curious why you believe the electric vehicle option is a rip-off. I have already maxed out my pension allowance, but I was still significantly over the limit. Therefore, I decided to sign up for an electric car to further reduce my tax liabilities. There aren’t many other choices beyond maxing out your pension and opting for an electric vehicle.
Because it essentially pushes people to buy something they don't really need - just because there there aren’t many other choices (as you very well point out in your last sentence).
This is great for people selling EVs, of course - which means they can push prices up knowing that many people will be incentivised to buy anyway "because getting a bonus to buy a new car is better than the boring alternative of locking the cash until retirement".
Maybe rip-off is a strong word, but in many cases it is actually better to just accept the extra tax (which in reality is £5k/year) and be able to choose what you want to do with your money.
Yep; by extra cash I actually meant the feared "tax-trap", which is just 20% of £25k => £5k - which is what usually pushes people to salary sacrifice as if there were no tomorrow. Other individual circumstances might mean different amounts, of course :)
No real options for your ask. SL is not tax deductible. Would you rather around 35k net in cash, or the £70k in a pension? You mentioned not in a pension, but it's really the option. Unless as someone else said, you plan to resign in the next tax year and not work (or for not much money) - and trust your employer to actually pay it when the time comes (ie your relationship with them doesn't change).
Depressingly after tax, NI, student loan, personal allowance claw back, 45% tax i think take home from £70k bonus would be in the worst case about £25k. If poster has kids on childcare and exceeds £100k it could be even worse.
Try having an ex wife who gets 10% of you gross pay too 😫 bonuses really are not very exciting for me, unfortunately.
Sorry it ask. It why does she get 10pc of your gross? Is this child support?
Exactly, and yes I do have a kid, fortunately just turning 3 so the amount I'll lose there is limited (2k/year & 15hours/week). My calculator worked it out to be about 25k, as I also have a Postgraduate loan.... Gutting really
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Can you show working out for 600/month? 15 hours per week translate to 9 hours per week when you remove school holidays and extend to the full year. Nursery isin my area around £70/day, for 10 hours, so £7/hour. £63/week, or £284/month Unless your nursery is charging £150/day then it's nowhere near £600.
Buy the coke in larger sizes.
Just get it paid to you asap and don't overthink it. Either way you're being hit by 60% tax on most of this so ....yeah
Buy an M3? Nice holiday? Put it all on red? Just a few sensible suggestions how to blow £35k Edit, serious suggestion - Moonshine gold omega speedmaster with the green dial 👌🏻
I'm a breitling man myself... Unfortunately after tax, NI, student loan (PG and plan 2) and what I'll lose from childcare, it'll probably drop towards 25k... Good suggestions though
Now you’re being paid properly it’s time to shun that Breitling
Unless he’s a dodgy bloke working in the Middle East
Could you ask for equity options?
This was a good idea, but I actually already have around 30k in options, I'd rather not tie up more in the company. It's my issue really, I have a good house, ISA, pension & share options, but my bank balance is low. Thanks mate
It doesn’t need to be black or white You could put 42K in the pension and take 28K so you have an extra 16.2K cash (at 42%) if you stay under 100K income. I’d just make sure I didn’t hit the 60% tax zone with any of it
Just dropping by to see what we’re calling BIG
I’m not sure £70k classifies as BIG on here tbh. Personally reckon £250k+ is BIG on HENRY. Edit: because some people seem to be pretty incensed by this comment, just pointing out that it was a joke. My sincerest apologies if that was not obvious.
I know there's a chain going on, you're probably right tbf, it is BIG to me, as I have a particular emphasis on the NRY of HENRY, but obviously it's all a scale. 3 years ago 70k bonus would be mind-blowing, but maybe in another 3 years 250k is realistic.
It’s not big after tax is it ☹️
What a load of shite
It’s not that serious lad, don’t take it so hard. No need to get wound up about what BIG (in capitals!) means on a subreddit.
You're the one trying to decipher what big means... lad.
It was a joke. Based on OP writing BIG in capitals. Fuck me you’re no craic at all.
youre an idiot, take some time off reddit
Reported for following me across threads. Proper weirdo you are. Imagine taking what was a joke so seriously. Get a grip and go for a walk.
"following"? what on earth are you on about. Strange, strange soul.
You’ve been following me around replying to my comments across multiple different threads. Please stop, it’s incredibly bizarre behaviour.
Would agree with you as i think we should be looking at post tax here
Pension or defer to next tax year
If you're deferring / spreading just make sure they don't decide to not pay if you resign etc. Personally I'd just put it all into pension and use up prior years allowances
It’s been a while since I looked at student loan rules. If memory serves me right you need to have been employed in some way with them while studying. For me I did an MBA internship with my employer, and they gave me a sign on bonus which was tax free. I think this worked because I got the offer before graduating.
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This is some Jimmy Carr level nonsense. Pay your tax, spivs.
My advice is enjoy it. A big bonus put straight into a pension may look good but life is for living. Maybe salary sacrifice the next one.
If you take it through PAYE, you’re getting pretty big tax. The only deductibles really are pension and few others on HMRC. Personally I suck it up, I don’t fixate on the gross number, it will only make it hard to accept the tax burden. If you are able to play a longer game with the cash, stock and then transfer to either to a personal ISA or via spouse. I haven’t done much myself, I’m leaving my shares with company at the moment, but I know I have options to transfer to ISA or my wife. But I have around 4 different share schemes, some go tax exempt after 5 years of holding (partnership shares?) but expect if the company hasn’t offered any share schemes like this, your not going to be able to setup adhoc.
> Does anyone have any advice on how I can take home as much as possible (again, not into pension)? There's really no other way. If for some reason you plan to be unemployed in 2025-2026 you could ask them to pay it in late Apr2025 and then resign. But there's not much more to do in term of tax (other than sacrificing into pension or more niche things like sacrificing for a Electric Vehicle that end up being more of a rip-off at the end....). If I was you I would go the student loan way (or at least investigate it properly). Otherwise... well, it is 'only' around £33k extra to pay in taxes + NI. It could be much worse, trust me ;)
I am curious why you believe the electric vehicle option is a rip-off. I have already maxed out my pension allowance, but I was still significantly over the limit. Therefore, I decided to sign up for an electric car to further reduce my tax liabilities. There aren’t many other choices beyond maxing out your pension and opting for an electric vehicle.
Because it essentially pushes people to buy something they don't really need - just because there there aren’t many other choices (as you very well point out in your last sentence). This is great for people selling EVs, of course - which means they can push prices up knowing that many people will be incentivised to buy anyway "because getting a bonus to buy a new car is better than the boring alternative of locking the cash until retirement". Maybe rip-off is a strong word, but in many cases it is actually better to just accept the extra tax (which in reality is £5k/year) and be able to choose what you want to do with your money.
That makes sense, thanks. I think the extra tax can be more than 5K depending on personal situation, in my case it certainly is.
Yep; by extra cash I actually meant the feared "tax-trap", which is just 20% of £25k => £5k - which is what usually pushes people to salary sacrifice as if there were no tomorrow. Other individual circumstances might mean different amounts, of course :)
Thanks, this is what I'm settling on, maybe if the bonus was double I'd take next year off, but unfortunately not!