Jump in Tax rate

gally56

Hi and thank you to everyone who tooks the time to read and reply to my post.
So obviously April was the start of the Tax year and I was paid my last but one salary before being made redundant.
My gross wage for April was 2896.43 and that amount was reflected in my taxable Year to date with me paying tax of £368.80. and that reflected in my tax paid YTD.
moving on to my May Wage I had a redundancy of £80,698.04 with keeping the tax free £30,000 and asking for the rest to be put into my DC pension pot so i can reap the tax benefits.
My final salary this month was a gross of 41970.99 but with the £30K tax free removed I was taxed on £11970.99 and have been taxed £3815.55 with my Taxable pay showing 14867.42 and my Tax paid YTD showing £4184.35.
when I use the LIsten To the taxman wage calculator and I put in both my April and May gross wage amounts in I get this Tax Breakdown for April 

and this tax break down for May 


As I havent gone over the 20% threshhold of £37700 why have I jumped up in Tax Rates and does this mean I will be in the $0%tax bracket for the rest of the year?

Dazed_and_C0nfused

gally56 said:

Hi and thank you to everyone who tooks the time to read and reply to my post.
So obviously April was the start of the Tax year and I was paid my last but one salary before being made redundant.
My gross wage for April was 2896.43 and that amount was reflected in my taxable Year to date with me paying tax of £368.80. and that reflected in my tax paid YTD.
moving on to my May Wage I had a redundancy of £80,698.04 with keeping the tax free £30,000 and asking for the rest to be put into my DC pension pot so i can reap the tax benefits.
My final salary this month was a gross of 41970.99 but with the £30K tax free removed I was taxed on £11970.99 and have been taxed £3815.55 with my Taxable pay showing 14867.42 and my Tax paid YTD showing £4184.35.
when I use the LIsten To the taxman wage calculator and I put in both my April and May gross wage amounts in I get this Tax Breakdown for April 

and this tax break down for May 


As I havent gone over the 20% threshhold of £37700 why have I jumped up in Tax Rates and does this mean I will be in the $0%tax bracket for the rest of the year?

Your maths is at fault there.

Taxable earnings of £14,867 after two months of the tax year is equivalent of annual taxable earnings of £89k, well above the higher rate threshold.

What happens next depends on whether you are getting another job or not.  Or a pension.  Or claiming (taxable) benefits.

gally56

Dazed_and_C0nfused said:

gally56 said:

Hi, and thank you to everyone who took the time to read and reply to my post.
So obviously April was the start of the Tax year, and I was paid my last but one salary before being made redundant.
My gross wage for April was 2896.43, which was reflected in my taxable Year to date with me paying a ,tax of £368.80. and that reflected in my tax paid YTD.
Moving on to my May Wage, I had a redundancy of £80,698.0,4 with keeping the tax free £30,000 and asking for the rest to be put into my DC pension pot so I can reap the tax benefits.
My final salary this month was a gross of 41970.99, but with the £30K tax-free removed, I was taxed on £11970.99 and have been taxed £3815.55. My Taxable pay shows 14867.42, and my Tax paid YTD shows tax-free £4184.35.
when I use the Listen To the taxman wage calculator and I put in both my April and May gross wage amounts in I get this Tax Breakdown for April 

and this tax break down for May 


As I haven't gone over the 20%thresholdd of £37700 ,why have I jumped up in Tax Rate,s and does this mean I will be in the $0%tax bracket for the rest of the year?

Your maths is at fault there.

Taxable earnings of £14,867 after two months of the tax year is equivalent of annual taxable earnings of £89k, well above the higher rate threshold.

What happens next depends on whether you are getting another job or not.  Or a pension.  Or claiming (taxable) benefits.

AH I see thank you. Dazed at the moment I am  getting a DB pension of around 9236.52 per year and living off my savings although I am considering taking up a job.  So in both of these scenarios how will I stand Tax wise?