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Tax in new role after Redunancy
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bmb14
Posts: 2 Newbie

Hi, I took redundancy from my job in March where I was earning £70k+. I received the pay out in April of just over £50k. I then received a second payment in May of around £1k although I am not sure what this was for. I did not work or have income for 5 months. I started a new role this month and I will receive my first pay tomorrow. I want to understand which tax rate I should expect from my new role since I have already 'earned' over £50k this year. Should it be the higher tax rate of 40% on all my new earning for this tax year. Or as the first £30k was tax free in my redundancy pay out will I not pay the higher tax rate? Thanks
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Did you receive a P45 for the redundancy payment that was paid in the 22-23 tax year ? You should only be taxed on the £21K YTD, 40% tax starts at £25139 YTD for September so if your taxable pay for the month is over £4139 then you could be paying some 40% tax. Were you receiving any taxable benefits whilst unemployed ?
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Did you receive £30 k redundancy tax free?0
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Thanks, I did receive £30k tax free. My new role is only £46k per year so less then my previous job. I have not received a P45 for 22-23 tax year. I think I from your reply molerat that I have been taxed correctly which is great. And also means I won't be as taxed as I thought.0
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bmb14 said:Thanks, I did receive £30k tax free. My new role is only £46k per year so less then my previous job. I have not received a P45 for 22-23 tax year. I think I from your reply molerat that I have been taxed correctly which is great. And also means I won't be as taxed as I thought.
In relation to earnings in the current 22-23 tax year, what did you tick on the new starter form given to you by your new employer?0
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