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Tax on the notice period for redundancy?
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whacks
Posts: 58 Forumite
My wife is being made redundant (good news for us) and she has the tax free part of £3670. The thing we are trying to work out is how much tax she will pay on the eight weeks notice?
They are letting her leave straight away but still paying 8 weeks notice. The first amount for a months pay is £1988 and the second amount to make up the rest of the 8 weeks is £1609. This is all paid in the same month. Will she pay a higher then normal amount of tax for that month? Or do they work it out as being pay for over 8 weeks?
Thanks
They are letting her leave straight away but still paying 8 weeks notice. The first amount for a months pay is £1988 and the second amount to make up the rest of the 8 weeks is £1609. This is all paid in the same month. Will she pay a higher then normal amount of tax for that month? Or do they work it out as being pay for over 8 weeks?
Thanks
0
Comments
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If paid in PAYE it will be more than normal but can be reclaimed, P50 or automaticaly if she gets another job or claims JSA.
If you get the HMRC PAYE calculator up and stick in the numbers off the last pay slip it will work out the tax.
https://www.gov.uk/government/collections/how-to-manually-check-your-payroll-calculations0
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