Tax on Redundancy Payment - Spitting Feathers

smileypigface

JimmyTheWig wrote: »

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Hold on, that's not right even then. Presumably you've been taxed at 40% for most of this money as to earn a big lump sum in one month would easily push you over the threshold for that month.
If you're not a higher rate tax payer, that's even worse.

I diverted some of my redundancy payment to my pension leaving myself some headroom to earn the amount I need to earn for the rest of this year while still remaining in the 20% tax bracket - I have used all my personal allowance in the salary earned up to 29 June.

However the MOD taxed my redundancy lump sum on a week one basis! Bonkers!

When I earn more money I am quite happy to pay tax on it - just not happy paying up front for a liability I may not even incur!

Grrrrrr

mildred1978

smileypigface wrote: »

I diverted some of my redundancy payment to my pension leaving myself some headroom to earn the amount I need to earn for the rest of this year while still remaining in the 20% tax bracket - I have used all my personal allowance in the salary earned up to 29 June.

However the MOD taxed my redundancy lump sum on a week one basis! Bonkers!

When I earn more money I am quite happy to pay tax on it - just not happy paying up front for a liability I may not even incur!

Grrrrrr

Are you sure it's week 1? It should be month 1.

smileypigface

mildred1978 wrote: »

Are you sure it's week 1? It should be month 1.

Very possibly - terminology mix up on my part