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Lump sum back pay
lastbigspender
Posts: 223
Forumite
in Cutting tax
Hi All
I am due a lump sum gross back pay of around £7,5k.
What would be the breakdown of this in terms of tax and NI?
Also I believe we are going to be given the option of splitting the payment over financial years as others will have a lot more of a lump sum would it be recommended for my payment?
Thanks in advanced.
I am due a lump sum gross back pay of around £7,5k.
What would be the breakdown of this in terms of tax and NI?
Also I believe we are going to be given the option of splitting the payment over financial years as others will have a lot more of a lump sum would it be recommended for my payment?
Thanks in advanced.
OD £2,500 cleared onto Money Transfer
MT 0% 20 months Jan26 £1,650 / £2,575
No. #20 - Save 1p A Day 2026 £451.62 / £667.95
No. #6 - Fiver Friday Challenge for 2026 £300 / £260 - COMPLETE
Invested £360 into Vanguard FTSE all world0
Comments
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Impossible to say without knowing your other earnings.
If an extra £7.5k would push you into the 40% tax band, then it probably would be beneficial to split the payment.1 -
earnings is £43k per year would this helpgreatkingrat said:Impossible to say without knowing your other earnings.
If an extra £7.5k would push you into the 40% tax band, then it probably would be beneficial to split the payment.OD £2,500 cleared onto Money Transfer
MT 0% 20 months Jan26 £1,650 / £2,575
No. #20 - Save 1p A Day 2026 £451.62 / £667.95No. #6 - Fiver Friday Challenge for 2026 £300 / £260 - COMPLETE
Invested £360 into Vanguard FTSE all world0 -
If those figures are exact then there would be a small amount of that attracting tax at 40%, which kicks in at £50,270 (unless you're in Scotland), with the rest at 20%.lastbigspender said:
earnings is £43k per year would this helpgreatkingrat said:Impossible to say without knowing your other earnings.
If an extra £7.5k would push you into the 40% tax band, then it probably would be beneficial to split the payment.1
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