Help with tax please

absolutely_skint

I'm after some help with my tax please. I have just had a decision from work which means they are backdating promotional pay by 2.5 years. They intend to pay me in march. This is very good (and I am by no means complaining) however this lump sum coming into my pay in this tax year will put me into the 40% tax bracket for approx £4000 which means I will be paying the tax man an extra approx £800. In previous years I wasn't near the 40% limit. I am due to be made redundant during the next tax year (i have asked them to hold back payment until April). If they insist on putting it in march salary is there anyway I can claim tax back? Any info gratefully received. Thanks

dori2o

absolutely_skint wrote: »

I'm after some help with my tax please. I have just had a decision from work which means they are backdating promotional pay by 2.5 years. They intend to pay me in march. This is very good (and I am by no means complaining) however this lump sum coming into my pay in this tax year will put me into the 40% tax bracket for approx £4000 which means I will be paying the tax man an extra approx £800. In previous years I wasn't near the 40% limit. I am due to be made redundant during the next tax year (i have asked them to hold back payment until April). If they insist on putting it in march salary is there anyway I can claim tax back? Any info gratefully received. Thanks

You may be able to get HMRC to apportion the monies and apply them to the year that they are due. You would need to write to HMRC and explain that the payment is the back payment of salary that was not originally given at the time it was earned. You would also need a breakdown from your emplkoyer of exactly how much of the lump sum payment applied to each tax year.

It has been done before, normally with pensioners who have their pensions backdated in one lump sum.

You need to write to your HMRC office with the information.

absolutely_skint

Many thanks for that information-I will try that once they figure out when they are going to pay me-anything to save more money from going to the taxman.

John_Pierpoint

The forum has sort of done this one before.
These links might prove useful:
https://forums.moneysavingexpert.com/discussion/2762786

http://www.hmrc.gov.uk/manuals/pomma...3.htm#IDAT1JKB