Lump sum back pay

lastbigspender

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.

greatkingrat

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.

lastbigspender

greatkingrat 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.

earnings is £43k per year would this help

eskbanker

lastbigspender said:

greatkingrat 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.

earnings is £43k per year would this help

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%.