Resignation date - any advantage in doing it at the start of a tax year?

pterri

I’m going to draft a resignation letter today, I think I’m going to do it! I was going July but there is suddenly a heap of work and I’ll just do it badly or not at all! I don’t need the stress, either psychologically or practically for additional £££. I’m thinking to go for April 5th, the tax year, it’s two months and having a ‘clean’ tax year may make some admin easier? Is that nonsense? I suspect it is and I guess some work payments may actually land in the new tax year so it’s not really especially relevant? I’ll not be drawing my DB, I’ll be using my own SIPP/ISA for now. 

Marcon

pterri said:

I’m going to draft a resignation letter today, I think I’m going to do it! I was going July but there is suddenly a heap of work and I’ll just do it badly or not at all! I don’t need the stress, either psychologically or practically for additional £££. I’m thinking to go for April 5th, the tax year, it’s two months and having a ‘clean’ tax year may make some admin easier? Is that nonsense? I suspect it is and I guess some work payments may actually land in the new tax year so it’s not really especially relevant? I’ll not be drawing my DB, I’ll be using my own SIPP/ISA for now. 

The only thing that makes sense is surely that you've had enough and can't wait to get out, from the sound of it!  A few days after 6 April would put you into the new tax year with a new personal allowance for the year. That might be relevant depending on your expected (potentially taxable) income in 25/26. Having some income which falls into the next tax year, even if quite modest (you might for example be due holiday pay in lieu of holidays not taken?) may be a consideration.

NoMore

I believe April is common time to retire for the reasons stated. How much of an actual difference it makes, not sure. It’s also a good time due to moving into the better weather (hopefully).  

Personally I think,  If you’re ready to go then go. If you start overthinking it to try and maximise it then you end up procrastinating and slipping into one more year syndrome. 

pterri

NoMore said:

I believe April is common time to retire for the reasons stated. How much of an actual difference it makes, not sure. It’s also a good time due to moving into the better weather (hopefully).  

Personally I think,  If you’re ready to go then go. If you start overthinking it to try and maximise it then you end up procrastinating and slipping into one more year syndrome. 

I had to get the kitchen done last year after a fire so that put it off. All paid for now so I’ve no big spends in the immediate future, it’s a good time, I should man up!

pterri

Marcon said:

pterri said:

I’m going to draft a resignation letter today, I think I’m going to do it! I was going July but there is suddenly a heap of work and I’ll just do it badly or not at all! I don’t need the stress, either psychologically or practically for additional £££. I’m thinking to go for April 5th, the tax year, it’s two months and having a ‘clean’ tax year may make some admin easier? Is that nonsense? I suspect it is and I guess some work payments may actually land in the new tax year so it’s not really especially relevant? I’ll not be drawing my DB, I’ll be using my own SIPP/ISA for now. 

The only thing that makes sense is surely that you've had enough and can't wait to get out, from the sound of it!  A few days after 6 April would put you into the new tax year with a new personal allowance for the year. That might be relevant depending on your expected (potentially taxable) income in 25/26. Having some income which falls into the next tax year, even if quite modest (you might for example be due holiday pay in lieu of holidays not taken?) may be a consideration.

Yeah, I’m in danger of overthinking things. It’s a blessing and a curse

born_again

pterri said:

I’m going to draft a resignation letter today, I think I’m going to do it! I was going July but there is suddenly a heap of work and I’ll just do it badly or not at all! I don’t need the stress, either psychologically or practically for additional £££. I’m thinking to go for April 5th, the tax year, it’s two months and having a ‘clean’ tax year may make some admin easier? Is that nonsense? I suspect it is and I guess some work payments may actually land in the new tax year so it’s not really especially relevant? I’ll not be drawing my DB, I’ll be using my own SIPP/ISA for now. 

Why not just go now. If you want out, forget about the rest. Just do it. 

Life is far to short to get stressed about work, when you can simply write a letter telling them you are leaving.

mebu60

born_again said:

pterri said:

I’m going to draft a resignation letter today, I think I’m going to do it! I was going July but there is suddenly a heap of work and I’ll just do it badly or not at all! I don’t need the stress, either psychologically or practically for additional £££. I’m thinking to go for April 5th, the tax year, it’s two months and having a ‘clean’ tax year may make some admin easier? Is that nonsense? I suspect it is and I guess some work payments may actually land in the new tax year so it’s not really especially relevant? I’ll not be drawing my DB, I’ll be using my own SIPP/ISA for now. 

Why not just go now. If you want out, forget about the rest. Just do it. 

Life is far to short to get stressed about work, when you can simply write a letter telling them you are leaving.

This. If you can afford to do it then what are you waiting for? 

Triumph13

The only dates that have any financial advantage are:

1. When you qualify for any bonus payment from work;
2. When you have earned enough to get a year's NI stamp;
3. End of May, to benefit from being paid for the two days off at Easter and the two bank holidays in May;

With the possible exception of #1, none of those is enough to keep working at a job you don't enjoy if you don't need to.

Asimovs_nightfall

What about finishing at the end of the calendar year, starting the new year retired - does anyone have any experience of such a date?  Seems like a nice way to close things off if you can manage the work to the end.

JayRitchie

Have you checked that you are fully entitled to state pension?

Is there a benefit for you in working long enough to have earned enough to cover the personal allowance such that none of your earned income is taxable in 25 26 tax year? If you are drawing from SIPPs that probably isn't as significant as it could be if taking from ISAs.

Brie

Any possible redundancy coming up?  I nearly* sang Hallelujah when the company I worked for told us they were closing our location as I knew I'd get a year's pay tax free.  And could retire too.  And take all my stock options.

*I didn't.  First off I don't have that good a singing voice and it would have been a slap in the faces of all my colleagues who being 30+ years younger than me were immediately panicking about their futures.