Vr tax

Thecar

IIve Just taken out vr and received a payment of £37841.76

Tax paid £2212.73 on this payment i dont pay nsi my other income is £965 state pension and my works pension £635 both a net payments on my vr payment is the tax correct as does seem a lot of money I tried to call tax office but after 45 mins I gave up any help much appreciated i was told the first £30000 is tax free

Ayr_Rage

How much is your annual state pension?

How much is your annual pension, gross, not net ?

artyboy

was that entirely a redundancy payment or was there any element of PILON in there (because PILON is still taxable)?

Reaper

Sometimes an emergency tax code is applied by your employer

Linton

Large one off payments are liable to give rise to excess tax especially early in the tax year.

The reason is that tax allowance and tax bands are allocated cumulatively over the tax year. In month 1 you get 1/12 of you tax allowance and tax bands, in month 2 1/6th etc.

Thecar

The £30000 was tax free the other payments was 12 weeks pilon and hrs i worked in April the tax just seems a lot for the amount of £7841.76

masonic

Being paid £7841.76 in taxable income (+pensions) in month 2 of the tax year will mean that some of it would have been taxed at the higher rate. You'll be able to claim this back if you don't continue to earn at this level in subsequent months.

Thecar

Tks very helpfull only income ill have will be my state pension which is £950 and company pension which is £640 both are net payments monthly no other income

Ayr_Rage

https://forums.moneysavingexpert.com/discussion/comment/82017397#Comment_82017397

State pensions are NOT paid monthly but every 4 weeks, therefore you get 13 payments a year.

Thecar

Ofcourse it is my mistake