Are commission and bonuses taxed at a special rate?

Cash commission and bonuses are employment earnings. The extra income can fall across more than one Income Tax band, depending on your total income, pension and Personal Allowance. This tool compares the annual position before and after the extra pay.

Will this show the exact amount on my bonus payslip?

It shows an annual planning estimate. National Insurance and student loan deductions normally depend on the pay in each pay period. A bonus concentrated in one month can therefore differ from this evenly spread estimate. Your tax code and earlier pay and tax also affect PAYE. Ask payroll for a pay-period illustration for a specific payout.

How do I work out whether an extra shift is worth it?

Enter your actual gross hourly rate, paid hours per shift and total shifts in the selected tax year. Add any extra costs and unpaid time, such as travel. The result shows the estimated additional take-home, money after costs and money per hour including that extra time.

What if I do the extra work for another employer?

Use the two-jobs calculator instead. This explorer assumes the extra earnings come from the same employer. Separate employments can have separate National Insurance calculations and different payroll tax codes.

Calculator

What could your extra pay leave you with?

Explore commission, bonuses and extra shifts after tax, pension and loan repayments. Add costs and time to make the comparison useful to you.

Plan extra earnings from the same employer in one tax year. This annual estimate treats pay as spread evenly for National Insurance and loans, so it is best suited to regular extra pay. It does not predict a one-off bonus payslip.

Your pay in this tax year

Gross pay without this extra pay (£)

Your expected employment pay for the whole selected tax year, before deductions.

How would you like to enter the extra pay?

Extra gross pay in this tax year (£)

Enter the total you expect from this employer between 6 April and 5 April.

Include extra costs and time (optional)

Total extra costs in this tax year (£)

For example, extra travel or childcare you pay for yourself. Subtracted after tax, without assuming tax relief or support.

Total extra hours in this tax year

Include unpaid time too. Leave at zero if the extra pay does not need extra hours.

Tax, pension and loan assumptions

Tax year

Where you live for tax

Pension method

Student loan

Include a loan only if repayments apply to these scenarios.

Postgraduate loan

How this estimate works

We compare two annual employment-income calculations using the same tax year, UK tax region, pension method and loan plans. The second adds your extra pay. The difference is the estimated extra take-home. Income Tax includes the standard Personal Allowance and its taper above £100,000 of adjusted net income.

National Insurance uses standard employee rates and annual thresholds as an approximation to regular pay. Loans use annual thresholds too. Actual deductions are normally assessed each pay period, so a single bonus or an uneven shift pattern can produce a different result. The average monthly figure is the annual result divided by 12.

Pension percentages use full pay, rather than qualifying earnings. Choose whether the extra earnings are pensionable. Relief-at-source percentages are your own net payment; extra higher-rate relief claimed separately is excluded. Employer pension contributions and pension allowance tax charges are not included.

Costs reduce the money left after deductions; they do not reduce taxable pay here. Benefits, childcare support and the High Income Child Benefit Charge are excluded. If your extra pay changes support eligibility, also check the relevant income thresholds.

Sources and calculation approach checked 24 October 2026. Historical years use our versioned tax-year configurations. Read the full calculation methodology or our commission and tax guide.

Frequently Asked Questions

Are commission and bonuses taxed at a special rate?: Cash commission and bonuses are employment earnings. The extra income can fall across more than one Income Tax band, depending on your total income, pension and Personal Allowance. This tool compares the annual position before and after the extra pay.
Will this show the exact amount on my bonus payslip?: It shows an annual planning estimate. National Insurance and student loan deductions normally depend on the pay in each pay period. A bonus concentrated in one month can therefore differ from this evenly spread estimate. Your tax code and earlier pay and tax also affect PAYE. Ask payroll for a pay-period illustration for a specific payout.
How do I work out whether an extra shift is worth it?: Enter your actual gross hourly rate, paid hours per shift and total shifts in the selected tax year. Add any extra costs and unpaid time, such as travel. The result shows the estimated additional take-home, money after costs and money per hour including that extra time.
What if I do the extra work for another employer?: Use the two-jobs calculator instead. This explorer assumes the extra earnings come from the same employer. Separate employments can have separate National Insurance calculations and different payroll tax codes.