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Some advice please
Poppie68
Posts: 4,881 Forumite
Sorry posted first on the 'cutting tax' forum
I hope someone can help.
I have recently finished work due to ill health, i came to an agreement with my employer to end my employment with a years pay. I have recieved the 12 months pay but they have deducted tax and NI, i didnt earn enough to pay tax and NI and the pay off is still below my tax allowance. Is this correct or is this 12 months treated differently and is subect to tax and NI.
I hope someone can help.
I have recently finished work due to ill health, i came to an agreement with my employer to end my employment with a years pay. I have recieved the 12 months pay but they have deducted tax and NI, i didnt earn enough to pay tax and NI and the pay off is still below my tax allowance. Is this correct or is this 12 months treated differently and is subect to tax and NI.
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Sorry posted first on the 'cutting tax' forum
I hope someone can help.
I have recently finished work due to ill health, i came to an agreement with my employer to end my employment with a years pay. I have recieved the 12 months pay but they have deducted tax and NI, i didnt earn enough to pay tax and NI and the pay off is still below my tax allowance. Is this correct or is this 12 months treated differently and is subect to tax and NI.
Can you give the figures?
Your tax code is split into 12 if you are paid monthly. So your allowance is around £780 per month. If you earn £600 a month, you'll pay no tax or NI. If they've put through £7200 in one lump, you'll only get £780 tax free allowance, and the rest will be taxed and NIed as if you earn that every month.
You can't claim the NI back, but you can claim the tax back (if you're not going to work for the rest of the tax year.Trying to be a man is a waste of a woman0 -
My pay was £523 per month, minus £26 towardscompany pension so i took home £497 each month...0
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Sorry meant to add. Tax code was 810L and they have deducted £2220.0
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Will you be working or claiming benefits between now and next April 5th?Trying to be a man is a waste of a woman0
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When was payment made?Trying to be a man is a waste of a woman0
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I am putting a claim in for ESA and payment was recieved today i dont claim any other benefits.0
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Its my employer who has messed it up, i have tried contacting him today so hopefully he will sort it next week. If not it will be a nice little windfall next april. Thanks for your help Notanewuser much appreciated.0
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Tell him your tax code was wrong (should have become 944L on 6th April).Trying to be a man is a waste of a woman0
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