Income Tax payable on VS
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stoutman5
Posts: 12 Forumite
Hi there - advice please......
I recently received a Severance payment from my previous employers of £79,858 on April 30th, 2015 ( I was made redundant 31st March, 2015 )
The first £30,000 was tax free, but on the taxable amount of £49,858, I have had £20,885 taken off me in Income Tax which seems too much.
As this was the 1st month of the new 2015/2016 tax year, can I assume that HMRC thought this was my normal monthly salary ( I hadn't informed them of my Redundancy beforehand ).
Can someone please calculate/advise me if I am entitled to a TAX Rebate, and what the proper TAX payable should have been?
Since my redundancy, I have regained new employment at £2,000 Gross per month, through an Umbrella company.
Many thanks
I recently received a Severance payment from my previous employers of £79,858 on April 30th, 2015 ( I was made redundant 31st March, 2015 )
The first £30,000 was tax free, but on the taxable amount of £49,858, I have had £20,885 taken off me in Income Tax which seems too much.
As this was the 1st month of the new 2015/2016 tax year, can I assume that HMRC thought this was my normal monthly salary ( I hadn't informed them of my Redundancy beforehand ).
Can someone please calculate/advise me if I am entitled to a TAX Rebate, and what the proper TAX payable should have been?
Since my redundancy, I have regained new employment at £2,000 Gross per month, through an Umbrella company.
Many thanks
0
Comments
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You need to contact HMRC and get your tax code fixed
Was it paid through PAYE
did you get a P45 with the details on.
too late to do a P50.0 -
Hi - yes, thanks for reply getmore4less - it was PAYE & I did get my P45 which I sent to HMRC via post. Have tried to phone them, but got tired waiting on 2 occasions, having had no reply after 40 mins! In your opintion, am I due a rebate?
Thanks0 -
https://www.gov.uk/claim-tax-refund/overview
You might be but you have to wait for HMRC to answer your phone.ally.0 -
The P45 should have gone to the umbrella company
once they process that you should start getting zero tax till you catch up on PAYE.
I think you might not earn enough to catch up.
https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2015-16/tax-and-tax-credit-rates-and-thresholds-for-2015-16
(you need to get on top of this if using an umbreal they don't always get it right.
rough guide 10k free £30k 20% (£50+£20k - £10k - £30k)= £30k at 40% so around £18k a bit less than the £21k(ish) paid0 -
getmore4less wrote: »The P45 should have gone to the umbrella company
once they process that you should start getting zero tax till you catch up on PAYE.
I think you might not earn enough to catch up.
PAYE does not work like this, once the P45 details have been included into the OPs new job a calculation of tax due as at that point in the year will be made and this figure will be compared to the figure for total tax paid so far. If tax due is greater than tax paid then the difference between the two is deducted as tax; if tax due is less than tax paid then the difference between the two is given back as a tax refund.
This process continues for the full tax year with each payday having a comparison of tax due at that point with tax paid at that point and either taxing or rebating tax whichever is required to give a correct tax paid figure as at that point in the year.
At the year end payday tax due for the full year is calculated and again compared to tax paid and again tax is deducted or tax is rebated to bring the employee's tax paid to the correct figure for the year.0
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