We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax return details

Options
Hi everyone,

Can anyone confirm my understanding or suggest how I should go about this.

In Aug 2009 I was made redundant and took early retirement at the same time. (So I am on a company pension, lot lower than my salary was). The redundancy was >30K so I paid tax on the excess over this amount.

I am now considering my tax return (online) and I am confused about the way this works.

My understanding is that I am filling in my tax return with the details of my tax (P60 etc.) from the previous year. (i.e. I use P60 etc from year to April 2009 to fill form for 2009-2010. But this data contains nothing about my redundancy payment?

If I follow this logically will use P60 for 2010 to fill 2009-2010 which implies a 'hefty' earnings from the redundancy payment.

So I am a bit confusd on correct way to proceed.

Any help or sensible suggestions?

Comments

  • You are currently completing your 2008-09 tax return which includes details of income for the period from 6/4/08 to 5/4/09. This will not include any details about your redundancy.

    Your 2009/10 tax return will be sent to you in April and this is the one where you will include your redundancy pay - just ensure when you come to complete this that you include the tax free element of the redundancy pay in the appropriate box or you will be taxed on it.
  • Hi Rolo,

    This is sort of what I thought. The 'problem' I have with this is that this will generate a tax code for 2009-2010 which is based on my full year earnings of 2008-2009 and so I will get stung for a lot more tax for this year even though I am now earning a lot less. Sure I may get a tax rebate but it means 'lending' money to the government without any interest or return on it.

    Thanks for the reply.

    regards,

    bon
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    you already have your tax coding for 2009-2010 ..that's this year
    so I don't really understand what you are saying here.
  • Although there are certain circumstances where your earnings effect your tax code I cannot think of any that would to apply to you. If you are worried just give your local tax office a call to let them know what your earnings for 2009-10 will be.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.