Example
Bonus of GBP 20,000 after tax
A larger worked bonus example showing why the cash you keep is often lower than the headline award suggests.
Scenario
A worker expecting a GBP 20,000 bonus wants a realistic estimate of what that means after tax, National Insurance, and any student loan deductions.
What to notice
A larger bonus can move more of the extra income into higher marginal deductions. The headline award may feel generous, but the actual cash effect is usually much smaller than people expect.
Practical use
Use the bonus tax calculator to estimate the net amount and then compare it against other forms of compensation if you are weighing trade-offs.
How to use PayPath here
Run the relevant calculator for your live numbers, review the methodology if the assumptions matter to your decision, and save the strongest scenarios in the workspace if you are comparing more than one option.