Iguana
Member Since: 14 Oct 2013
Location: 'Sunny' Zomerset
Posts: 9424
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Hi all,
My last day at HP will be 31st March, as I am being made redundant
I will receive a redundancy payment over the £30k tax free payment level, so I know that the 1st £30,000 will be Tax free and the remainder will be taxed
I will though physically receive my payment in the New 2019 Tax year, around the 28th April, and as I will be by then unemployed will I somehow be able to use my £12,500 personal tax allowance for the taxable part of my redundancy payment?
So as an example, If my redundancy payment is £40,000 - £30k tax free, leaving £10k - can I also get this tax free as it is below my personal allowance level?
I hope the question makes sense  If my assumption is correct, how does work in effect, or do I have to speak with the tax office before payment?
Thanks in advance (as usual  )
Iggy Iggy/Ieuan
Current LR =
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&
1992 Land Rover Defender Camper
- Gone but not forgotten:
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MY05 Disco 3 'S'
MY14 FL2 HSE manual in Blue
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1960 Series 2 88" (No idea why I sold it!)
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 26th Feb 2019 12:53 pm |
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stew 46
Member Since: 01 Dec 2011
Location: cornwall
Posts: 10148
  
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I’m guessing it would be tax free and you will fill in a tax return for 2019-2020 when that time comes -------------------------------------------------
if you cant hold on dont let go , it ill come in handy for something even if you never use it.
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| 26th Feb 2019 12:58 pm |
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ianm27
Member Since: 02 Jun 2016
Location: Hertfordshire
Posts: 2154
 
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It will depend on when the payment is declared, not when it is paid.
If the termination payment is reported in 2018/19 and your P45 shows leaving date as prior to 5 April 2019, then the answer is no. You may be entitled to a repayment of over deducted PAYE but that will depend on your total taxable income for 2018/19 and you will need to complete a Tax Return or form P50.
If the termination payment is declared as being in 2019/20 then the answer is still no, but.
The PAYE system is only able to use 1/12 of your personal allowance each month. So if the payment is declared in April 2019 (thus falling within the 2019/20 tax year) then you will be entitled to 1/12 of the tax free amount allocated against the payment.
Once you receive your P45 it is possible to contact HMRC and request a repayment of the PAYE tax deducted by declaring that you will not receive any further taxable income in the next 4 weeks and completing form P50
https://www.gov.uk/government/publications...orking-p50 Uncle Ray's spare wheel protector
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| 26th Feb 2019 1:08 pm |
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Iguana
Member Since: 14 Oct 2013
Location: 'Sunny' Zomerset
Posts: 9424
|
 Iggy/Ieuan
Current LR =
2015 RR Sport Autobiography
&
1992 Land Rover Defender Camper
- Gone but not forgotten:
MY10 D4 GS
MY05 Disco 3 'S'
MY14 FL2 HSE manual in Blue
MY15 Disco 4 HSE Lux in Santorini Black
MY08 Disco 3 SE manual in Buck Blue
1960 Series 2 88" (No idea why I sold it!)
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| 26th Feb 2019 4:10 pm |
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riverblanche
Member Since: 31 Aug 2010
Location: retford'ish
Posts: 2227
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Hi,
not questioning the above ^ just from my experience following redundancy about 3 years ago
taking a bit above 30k initially I was taxed on it (the bit above 30 that is)
then
end of that tax year total earnings (couple of months pay + the above redundancy) less than yearly allowance and a refund of tax 
couple of side issues, depending what your work/income options are going to be
(I did none and had none, all planned )
transferring any married persons allowance
and
if No/low income, energy providers gov scheme for winter allowance £150 credited (not all providers do it)
just a thought. Transit! 2019
Gone D3 HSE 2008
Another Porsche Cayenne 2022
Gone Porsche Cayenne 2020
Gone RRS HSE Dynamic 2016
Gone RRS HSE LUX 2011
Gone RRS HSE 2006
Gone D3 SE 2.7 2008
gone D2 Td5 1999
I plan on living forever and so far so good !
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.
Last edited by riverblanche on 26th Feb 2019 10:38 pm. Edited 1 time in total
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| 26th Feb 2019 10:33 pm |
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galwaygreen
Member Since: 30 Oct 2011
Location: plymouth
Posts: 6525
 
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Think you have to add your wages for that year..then take the tax..40k pay off.....30k wages...tax to pay on 70k..ie some may be high rate
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| 26th Feb 2019 10:36 pm |
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