VES and Tax to be paid.

waterman1

Hi

I took a VES package after 32yrs of 90k = 3 years wages and a pension which i have deferred to 55 in 3 years time.

I pay tax at the basic rate and understand that the first 30k is at 25% and the 60k is at 40%. I have no intention of seeking employment and my question is can i claim any of the tax back as this is actually 3 years wages and should only be taxed at 25%. I read in a post that even if I took the JSA i would be taxed at 40%. This seems a bit unfair and any help would be appreciated before I contact the tax people. Are the CAB any good at giving advice on these matters.

Thanks

getmore4less

First £30k should be tax free.

Then you use up the rest of your 20% allowance

then you get taxed at 40%

Not a lot you can do about it if you get it paid.

Payment over more years might be possible
Pension might be an option
topping up tour current one to increase the pension/25% tax free
or an additional one

I think you probably need a good pension/tax/IFA type person to create a plan.