Redundancy and Income tax

TheGoldfish

Hi, I wonder if someone can advise me on a question I have concerning my redundancy pay and the income tax I paid on it.

I received £30k tax free and paid 40% income tax on the rest. The total salary I received for 2012-2013 was below the 40% threshold of £34,370. Can I claim back someof the income tax paid on my redundancy to fully utilise £34,370 at the lowerrate.

Thank you

getmore4less

Did you go get other work or claim JSA.

TheGoldfish

Hi,

No, I decided to have a few months off before starting to look for a job. I haven't claimed job seekers allowance either as I wasn't looking for work.

anamenottaken

TheGoldfish wrote: »

Hi, I wonder if someone can advise me on a question I have concerning my redundancy pay and the income tax I paid on it.

I received £30k tax free and paid 40% income tax on the rest. The total salary I received for 2012-2013 was below the 40% threshold of £34,370. Can I claim back someof the income tax paid on my redundancy to fully utilise £34,370 at the lowerrate.

Thank you

Yes, you can claim any over-payment. HMRC would work this out themselves and send you the refund but as you know that you will not be earning any more before the end of the tax year, you could contact them now about it.

Of course the amount of your redundancy payment over £30K would be added to the salary payment in order to work out your actual tax liability.

getmore4less

send in a P50 with the P45

TheGoldfish

Hi again.

I've looked at the P50 and am a bit confused. My P45 covers all my salary received for the tax year 2012-2013 as expected. It doesn't include any details of the taxable redundancy nor of a bonus payment I received 3 months after leaving. Do I put these amounts in section "Amount of income received since your last employment" and include copies of the redundancy payslip and bonus payslip from my former employee?

For full information my P45 covers £22424 salary and £3256 tax
Taxable redundancy was £22396 and £9375 tax (0 tax code)
Bonus payment was £2790 and £677 tax (0T/M1 tax code)
Total taxable income £47611 and £13189 income tax paid

Thank you

getmore4less

NO idea but that sounds sensible.

You could call HMRC and ask,

Or just do a full SA return for 2012-2013 which may be more complete and cover any pension payments and savings income as you are in the 40% bracket for a bit of the income.

A rebate of around £4260 is due more if there were pensions contributions.

telboyo

I looked at those figures and a quick in my head calc came up with about 4k so I reckon get more for less' calculation is probably correct.
If you sign on it you probably won't get a rebate from the revenue till aboutjune or july because the DWP are very slow in sending p60 etc to HMRC. It should improvre in the new tax year if the DWP use the new Real time tax thingy.