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2021-22 tax estimate following redundancy in August 2021

Cell
Cell Posts: 585 Forumite
Part of the Furniture 500 Posts Name Dropper Combo Breaker
edited 6 April 2021 at 4:13PM in Cutting tax
Hi
I was made redundant in August 2020. I had earned £21,000 including 12 weeks payment in lieu (from 14th August). I have not had a job since.
I've been into my tax account previously and noted that while I had paid £2,900 odd tax it was estimated that I would only actually pay £1,700 based on my employment when all was sorted out at the end of the year. My salary was around £33,000.
I am, therefore, expecting a refund when the maths are done. Having signed in today, however, they have based my future income for this tax year as £51,000 based on, I assume, my pro-rata earnings for 2020-21 (£21,000 in 5 months from their perspective although eight months based on Payment in lieu). This is despite not having worked for my ex employer since August.
My estimated tax is £7,886 which cannot happen as I have no plans to return to the workforce at the moment.
In short will this all come out in the wash when my ex employer sends out end of tax year documentation? Or will I have to await my new tax code and then contact them to rectify the position? Additionally, to complicate matters, I was planning to transfer 10% of my personal allowance to my wife. Will that even be possible while they have me as a higher rate taxpayer?
Thank you so much for any help :)
«1

Comments

  • I presume that you mean August 2020? The year 2020/21 will ‘all come out in the wash’ when HMRC get around to reviewing it. For 2021/22 simply go into the PAYE section and amend the details - there is an option to correct the information.
  • Cell
    Cell Posts: 585 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    I presume that you mean August 2020? The year 2020/21 will ‘all come out in the wash’ when HMRC get around to reviewing it. For 2021/22 simply go into the PAYE section and amend the details - there is an option to correct the information.
    What a great start eh? Getting the year wrong!
    Yes, 2020.
    I'm using Government gateway. Should I register with HMRC separately?

    https://www.signin.service.gov.uk/start
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 6 April 2021 at 4:30PM
    Cell said:
    I presume that you mean August 2020? The year 2020/21 will ‘all come out in the wash’ when HMRC get around to reviewing it. For 2021/22 simply go into the PAYE section and amend the details - there is an option to correct the information.
    What a great start eh? Getting the year wrong!
    Yes, 2020.
    I'm using Government gateway. Should I register with HMRC separately?

    https://www.signin.service.gov.uk/start
    Not sure that’s necessary - your gateway details should enable you to sign in here:

    https://www.access.service.gov.uk/login/signin/creds
  • Cell
    Cell Posts: 585 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    All I get is:

    You cannot access the service from this page

    To access this service, you must return to the government page you came from and start again.

    You can also start again from the GOV.UK home page.

    You might need your Government Gateway user ID and password.

    Make sure your web browser can accept cookies.

    Go to GOV.UK home page
  • Cell
    Cell Posts: 585 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 6 April 2021 at 5:26PM
    When I sign in from Gateway I get this for 2021-22, but no option to tell them about any changes.

    Taxable income from xxxxxx

    This section is Income received to date

    Income Tax and National Insurance paid from 6 April 2021 to 5 April 2022

    This employer told us how much you were paid up to 14 August 2020 when your employment with them ended.

    ------------------------------------------------------------

    When I go to tax details for 2021-22 I get this

    Your PAYE Income Tax summary for 6 April 2021 to 5 April 2022

    This section is the income tax summary for

    Employments that have ended since 5 April 2021

    XXXXXXXXX

    Your taxable income to date is £51,136

    Payroll number: xxxxxxxxxxxx   End date: 14 August 2020

    Annual amounts

    Your tax-free amount

    The income you can have, taking into account any adjustments, before paying tax.

    The amount is£12,570

    What makes up your tax-free amount

    Your estimated Income Tax

    An estimate of the total amount of Income Tax you will pay on all your PAYE income for this tax year.

    The amount is£7,886

    How your Income Tax is calculated

    Something missing?

    • Add a missing employer


      Add a missing pension


      Add missing income from another source

  • molerat
    molerat Posts: 34,853 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 6 April 2021 at 4:45PM
  • Cell
    Cell Posts: 585 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    molerat said:
    Again :-(

    You cannot access the service from this page

    To access this service, you must return to the government page you came from and start again.

    You can also start again from the GOV.UK home page.

    You might need your Government Gateway user ID and password.

    Make sure your web browser can accept cookies.

    Go to GOV.UK home page
  • molerat
    molerat Posts: 34,853 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 6 April 2021 at 5:13PM
    Employments that have ended since 5 April 2021
    Payroll number: xxxxxxxxxxxx   End date: 14 August 2020

    I think you may need to speak to someone !  You can't tell them the employment has ended because it has already ended but ......

    The link goes to GG for me but as you can get into GG there is no problem.

  • Also works for me - and please remove some of the details, including your name!
  • jimmo
    jimmo Posts: 2,287 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You're still getting the year wrong. In your Personal Ta Account you need to go to earlier years, not the current year. Then look at 20/21.
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