Tax return details

bon98uk

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?

Rolo_Tomasi

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.

bon98uk

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

you already have your tax coding for 2009-2010 ..that's this year
so I don't really understand what you are saying here.

Rolo_Tomasi

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.