Final paycheck - taxed £500?

Daisychains

Hi I have just received my final pay slip. I was dismissed due to illness and my pay slip is for £2,300 as it includes notice pay, my usual wage is £1200 and I pay £180 tax usually

Does anyone know what to do?
Thanks

McKneff

Are you going to be able to get back to work eventually.


If so, any over paid tax will come back through payroll.


Or give HMRC a ring and they will help you.

Daisychains

I am now on JSA looking for work

General_Grant

Daisychains wrote: »

I am now on JSA looking for work

So your JSA is taxable but will not have tax deducted. If you continue on JSA look to see how soon you would receive an amount equivalent to that which you received in excess of your usual amount (that is the additional £1,100). I think it would be about 15 weeks.

So if you are on JSA for 15 weeks (and I would hope you are not), you would have paid the correct amount of tax.

If you get another job before that time has expired (and I would hope you do), then your new employment should quickly bring you to the correct position.

Daisychains

Thank you so much Grant that explains things

Blondebubbles no not yet, haven't had my job centre appointment yet only just applied x

chrisbur

Daisychains wrote: »

Hi I have just received my final pay slip. I was dismissed due to illness and my pay slip is for £2,300 as it includes notice pay, my usual wage is £1200 and I pay £180 tax usually

Does anyone know what to do?
Thanks

If you want your figures checking you have to give full and exact details, do not round any figures give them to the penny.
From your last payslip what is the taxable gross, the tax paid, national insurance paid, tax code, tax basis and the week or month number. Also the taxable pay to date and tax paid to date.
How often are you paid ?

dancingfairy

If it's for last tax year then I believe you will need to write to the tax office and ask for a refund.
Assuming it's for this year then it should even itself out when you get back to work.
Basically you've had more than 1 months normal income but you've only got 1 months tax allowance. Next month when you 'earn' a lot less (by earn I mean benefits) you'll get another months free tax allowance so it will start to even itself out.
df

dancingfairy

I think the tax allowance this year is 883 a month for most people on a standard code. So at the end of month 1 they take however much you've earned above the 883 and you pay tax at 20% on that. So if you've earnt say 1,000 you'd pay tax on (1,000-883) at 20% (so 23.40). The next month you get another 883 tax free so they add up how much you've earnt so far, say £2,000 and work out how much that is above the tax threshold (now 1,766) as we're in month 2. You should have paid tax at 20% on (2,000 - 1766). SO you should have paid 46.80 by this point. You've already paid 23.40 so you pay another 23.40
Month 3, you get another 883 tax allowance taking your total tax free earnings up to 2499 but you haven't earnt anything so your total earnings are still 2,000. This is below the threshold for paying tax so you get any tax back that you've paid.
As you can see from my example of someone earning £1,000 a month, the tax code is cumulative so each month you either pay a bit more tax or get it back to you depending on whether you're ahead of behind how much tax you should have paid at that point. This means it should average itself out.
Unless you have had a company car, a sharesave scheme etc then your tax code is probably going to be 1060L this year. You don't really want it to say M1 afterwards. If it says 1060L then your tax is probably correct (unless payroll have messed up their calculations).
If you think it's wrong or you're not sure then you can try and ring the tax office (I say try as I don't think they are that easy to get hold of).
df

Daisychains

It says 1060l on this one and 1000l on my usual ones, thank you for the advice guys xx

General_Grant

Daisychains wrote: »

It says 1060l on this one and 1000l on my usual ones, thank you for the advice guys xx

Seems that "this one" is for this tax year (the year started 6 April) and your "usual ones" were for the last tax year. So any pay you received on or after 6 April should have been in the new year.

The code changed with the new tax year.

postmanpat68

If you currently are unfit for work and have a fit note from Doctors you should try to claim ESA.