How Much Tax Will I Pay??

kwackerman

Hi All,

I am taking VR from my job of 22 years ( scary!!)

I would like to know if there is any way I can work out how much of my VR payment I will lose to the tax man and whether I might be due a refund if I don't work again till April.

I expect to have earned a total of £31,400 by the time I leave work ( my VR date is 6/1/2012) this tax year. I am receiving a VR payment of £48,240 at the end of January.

How much tax/ NI will I have to pay out of this payment?

If I don't work till after the end of the tax year will I be due any refund? If yes is it enough to not bother finding work for three months?

Any help would be much appreciated.

Thanks

Andy

getmore4less

£30k tax free add the rest to the income for the year and it is taxed as normal No NI..

You will get taxed a bit more through PAYE but can claim it back if you plan not to work or claim JSA with a P50 or end of year return.


What is happening with notice? any PILON in the numbers.

kwackerman

Working the notice at the moment, finish 6/1/12.

All leave taken...........nothing owed.

wallpaperman

Hi Kwackerman,

My wife was in a fairly similar situation to you, I had similar questions a couple of weeks ago. She is not intending to work before next April or claim JSA.

I'm too new a user to post a link to the thread(!), that I started it's on page 2, I think.

We're fairly sure that she will be due a refund as the tax deducted by her employer for her final wage (which includes the redundancy payment) seems quite a bit too much. After getting some helpful advice on here she will complete the p50 form, though the HMRC website seems to suggest she should wait a number of weeks after leaving before submitting, and also to phone them as well in case there is any other additional information she needs to provide.

shop-to-drop

Might be worth putting some of it into your pension. Your HR department should help you with information on this.

getmore4less

kwackerman wrote: »

Hi All,

I am taking VR from my job of 22 years ( scary!!)

I would like to know if there is any way I can work out how much of my VR payment I will lose to the tax man and whether I might be due a refund if I don't work again till April.

I expect to have earned a total of £31,400 by the time I leave work ( my VR date is 6/1/2012) this tax year. I am receiving a VR payment of £48,240 at the end of January.

How much tax/ NI will I have to pay out of this payment?

If I don't work till after the end of the tax year will I be due any refund? If yes is it enough to not bother finding work for three months?

Any help would be much appreciated.

Thanks

Andy

No pilon to take into account so £30k tax free then £18240 added to the £31400 and taxed as income

forgot to ask whats your tax code so asuming you get standard allowance.
http://www.hmrc.gov.uk/rates/it.htm

20% goes upto £42475

£11075 @ 20% £2215
£ 7165 @ 40% £2866

PAYE will probably take a bit more so consider a P50.
http://www.hmrc.gov.uk/incometax/stop-work-refund.htm