Salary arrears paid in bulk and tax implications

Dazed_and_C0nfused

I wonder if the op is concerned about other things like reduced savings nil rate band and loss of Marriage Allowance?

penners324

Savy2013 said:

Thank you all.

i will contact my employer. 

I have already hit the 50k threshold this month due to the bulk payment.

Even with the amendments normally I would be well below the 50k threshold.

i am worried that my March salary will get taxed at 40% because of all this and they will place me on a higher tax bracket from April. This latter was indicated by the person from HMRC as a possibility.

It won't. It'll be tax mostly as normal. You may even get a refund due to over paying, maybe even 45% rate last month

Savy2013

Thank you all.

i was in panic mode after my call to HMRC.

i think based on what most have said I won’t be placed in the 40% tax band.

i will contact my employer to request that they inform HMRC that an arrears was paid in bulk. 

Dazed_and_C0nfused

Savy2013 said:

Thank you all.

i was in panic mode after my call to HMRC.

i think based on what most have said I won’t be placed in the 40% tax band.

i will contact my employer to request that they inform HMRC that an arrears was paid in bulk. 

You have already confirmed that you are well into the 40% bracket.

I have already hit the 50k threshold this month due to the bulk payment.

But that doesn't mean you will pay 40% tax on all of your remaining earnings in the current tax year.

You will get the benefit of your monthly tax code allowances and basic rate band.

And if your monthly (taxable) pay is less than £4,189 you are possibly going to get an adjustment in your favour for the 40% tax you have already paid up to now