Will i pay lots of tax

dulux01

I have a short term contract which ends in 4 weeks time. I have 9 days holiday entitlement which equates to 3 weeks work. If i work the 4 weeks and keep the holidays until the end of the contract will i be penalised by the tax man and have to pay lots of tax on my final wage.

McKneff

You will, but depending on how much you earn throughout the tax year up to April 2013 then you may or may be due a refund, it will even itself out over time. But in effect you wont pay more than is due.

anamenottaken

dulux01 wrote: »

I have a short term contract which ends in 4 weeks time. I have 9 days holiday entitlement which equates to 3 weeks work. If i work the 4 weeks and keep the holidays until the end of the contract will i be penalised by the tax man and have to pay lots of tax on my final wage.

Check that your employer is willing for you not to take the holiday during your contracted time.

If you are paid extra in your final wage (with some exceptions) it will have more tax and NI deducted than normal.

However when you begin another job in this tax year, you will pay less tax. At the end of the tax year (5 April), if you had still paid more tax than would be due on your earnings for the year, then you will get a refund paid to you by HMRC. If you are due a refund, make sure the tax man knows where you live. (And they don't email you to say you are due a payment, so ignore any emails which suggest you are due a refund.)