Can a bonus push you over the £100,000 threshold, and what should you check?
By Katharine, Founder, EMBR Tax
Last updated for the 2026/27 tax year · 6 April 2026
Why do bonuses matter more than people think?
A bonus can feel like a win, but it can also create knock-on effects that go beyond the extra pay. If you are close to the £100,000 threshold, a bonus may affect childcare support and the Personal Allowance taper in ways that are easy to miss.
The key point is that bonuses usually count as taxable income. That means they can increase your adjusted net income, even if your regular salary looks safely below £100,000.
- They can push adjusted net income above £100,000
- That can affect Tax-Free Childcare and Free Childcare for Working Parents
- It can also trigger more of the Personal Allowance taper
That is why a one-off payment can have a bigger effect than people expect. It is not just about the bonus itself. It is about what it does to the threshold position.
What is worth checking before the bonus lands?
- Your expected adjusted net income for the full tax year
- Whether extra pension contributions could reduce the impact
- Whether any employer bonus sacrifice option is available
If you are already close to the line, a bonus is one of the clearest reasons to review your tax position before the year ends.
What is the bottom line?
A bonus is not always just extra income. Near key thresholds, it can change your childcare and tax position quickly. If one is coming, it is worth checking the full picture early.
Frequently asked questions
Why can a bonus push you over the £100,000 threshold?+
Bonuses usually count as taxable income. That means they can increase your adjusted net income, even if your regular salary looks safely below £100,000.
What can a bonus above £100,000 affect?+
It can push adjusted net income above £100,000, which can affect Tax-Free Childcare and Free Childcare for Working Parents eligibility. It can also trigger more of the Personal Allowance taper.
What should you check before a bonus lands?+
Check your expected adjusted net income for the full tax year, whether extra pension contributions could reduce the impact, and whether any employer bonus sacrifice option is available.
Related guides
- How does the Personal Allowance taper work above £100,000?
HMRC reduces your Personal Allowance by £1 for every £2 of adjusted net income over £100,000. Find out how the taper works and how to plan around it.
- How can pension contributions reduce your adjusted net income for HMRC purposes?
Pension contributions can reduce adjusted net income for HMRC. Learn how net pay, relief at source, and salary sacrifice each affect the calculation.
- What should you do if your income looks likely to go just over £100,000?
Just over £100,000 can be costly. A practical checklist covering adjusted net income, pensions, Gift Aid, and bonuses to review before the year ends.