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PAYE tax adjustments
Previn
Posts: 241 Forumite
in Cutting tax
Hi,
I work for a large UK corporation & am paid thro PAYE.
I expect to earn around £53 k this year & have decided to pay enough avcs thro payroll into my defined contribution pension to use up my 40% rate..
This effectively means I will be paid nothing gross for Jan/Feb/March.
Can anyone tell me how this works from a PAYE perspective, as I have already paid tax @ 40% rate will it automatically adjust each month to refund some of what I have paid previously or will it wait till the March payment to re-calculate the whole thing so I receive one big refund. Or, will I end up having to claim back thro the tax office somehow?
Many Thanks
I work for a large UK corporation & am paid thro PAYE.
I expect to earn around £53 k this year & have decided to pay enough avcs thro payroll into my defined contribution pension to use up my 40% rate..
This effectively means I will be paid nothing gross for Jan/Feb/March.
Can anyone tell me how this works from a PAYE perspective, as I have already paid tax @ 40% rate will it automatically adjust each month to refund some of what I have paid previously or will it wait till the March payment to re-calculate the whole thing so I receive one big refund. Or, will I end up having to claim back thro the tax office somehow?
Many Thanks
0
Comments
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Provided that your tax code is cumulative and your pension is the type that is taken before tax is deducted, then your tax position will be re-calculated each month and any tax overpaid at that point will be refunded.0
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