If you’re expecting a bonus soon, you might have already planned how to spend it. Common uses include paying off debts, saving for a holiday, or setting aside for retirement. While these are sensible choices, there are valuable tax allowances that can make your spending more efficient.
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Consider using part of your bonus to fund an Individual Savings Account (ISA). ISAs offer tax-free growth on your investments, whether in deposit accounts or equity-based options. Using part of your bonus to fund an ISA now will keep future growth free from income and capital gains tax.
Allocate part or all of your bonus towards your retirement. You can get tax relief on pension contributions up to 100% of your salary each year, subject to limits. This way, you maximise your pension pot with the help of HMRC and possibly your employer.
Allocate part or all of your bonus towards your retirement. You can get tax relief on pension contributions up to 100% of your salary each year, subject to limits. This way, you maximise your pension pot with the help of HMRC and possibly your employer.
If you are expecting to receive a bonus and aren’t sure what to do with it, please get in touch to talk through your options.
For ISAs, investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA manager. Tax treatment varies according to individual circumstances and is subject to change. Stocks and Shares ISAs invest in corporate bonds; stocks and shares and other assets that fluctuate in value.
Inheritance Tax Planning is not regulated by the Financial Conduct Authority
Approver Quilter Wealth Limited, Quilter Financial Limited, Quilter Financial Services Limited & Quilter Mortgage Planning Limited. March 2025.