Final pay from last job and now getting 40% Tax

Hugomac

Hi guys,

Lost my job this week, and my final pay is Tues, but that is also going to include my months notice pay and remaining holiday pay.

It is going to be a large sum of money and now i am going to get taxed 40% when my usual is about 23-25%.

I can't call the tax office till i get my payslip in the door.

Questions:
When speaking to my payroll dept, they said that for some reason i am still on 'Week 1 tax' what does this mean?

If i don't get another job quickly how will i get the tex back that i have overpaid, as i take it i am getting more tax as they think this is now my new monthyl wage.

Thanks

jem16

Hugomac wrote: »

It is going to be a large sum of money and now i am going to get taxed 40% when my usual is about 23-25%.

Your tax will normally be 20%. Your percentage will come about because of your tax-free allowance.

When speaking to my payroll dept, they said that for some reason i am still on 'Week 1 tax' what does this mean?

It means that every week is looked at in isolation and not cumulatively. Tax is normally done cumulatively so that by the end of the tax year you have paid exactly the correct amount. This can be important if you have uneven amounts of pay such as overtime or bonuses.

If i don't get another job quickly how will i get the tex back that i have overpaid, as i take it i am getting more tax as they think this is now my new monthyl wage.

On a Wk 1 tax code you will never get it back even if you were to get a job tomorrow. You would need to reclaim it at the end of the tax year.

So two things you need to do;

1. Get a job
2. Get off that Wk 1 tax code.