Ex gratia pension payment

Ianboid

Update !!!!!!
Payment has been received £8k paid in tax
Many of my workmates have been told to claim tax back via a p50z form.
I believe that information is incorrect as they aren't actually dipping in to their pension pot.
Will tax just be filtered back through our weekly pay ?

molerat

Ianboid wrote: »

Will tax just be filtered back through our weekly pay ?

Yes, you will pay a much reduced tax amount each week.

Dazed_and_confused

Many of my workmates have been told to claim tax back via a p50z form.

Maybe they're about to be made redundant and no one has told them yet (other than referring them to the P50Z)

Seriously though there is no tax refund due at this point in time.

The next time you/they are paid the tax will be recalculated and if your annualised earnings have reduced (which they should given the one-off lump sum paid in the wages you've just been paid) then you will see a reduction in your normal tax as you won't be due to pay as much 40/41/45/46% tax as has already been deducted.