In reply to adderz: D'you mean an annual performance bonus? If yes, then it'spart of your salary so you pay tax at whatever your top rate is (once your bonus is taken into account). Sorry if i'm being dim and not understanding...
sorry my question may not have been that clear.
bonus is completely separate to pay, i.e. the yearly bonus.
so i take it if you're a top rate payer you'll pay 40% on the bonus?
Even if you're not quite a higher-rate taxpayer, if this bonus pushes you over then you'll pay 20% on the amount upto the higher rater threshold and then 40% on the rest
In reply to andy: Or indeed quarterly/monthly bonus - if it's income it's taxed as such. Only difference are things like deferred shares which are taxed when you get them. My bonus scheme gives me the option to instruct the trustees to sell enough shares to cover the tax liability when they're released (3 years) - which won't be much as I work for a bank!!