Calculating Tax

qqg3

qqg3

qqg3

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I've have been give two sums of money in redundancy that are subject to usual PAYE tax. I'm trying to work out how much should be taxed but I can't work out how to do it.

All PAYE calculators online are for yearly salaries, I just want to check a small sum.

Any pointers?
 
Just change the online calculator from annual to monthly, put in the total amount you will receive (wages + redundancy), job done

http://www.moneysavingexpert.com/tax-calculator/

Dependant on how much you have earned already of course and if this pushes you into the higher rate tax band it'll be different

But why is it taxable, the first £30,000 of redundancy is tax free (not including holiday pay, time in lieu)
 
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Hmmm, I'm probably a moron but I don't get it. I have the non-taxable bit sure. But then there is the taxable part I don't know how much tax there should be on it. Likewise, my last month wasn't a full month so I don't know how to figure out a months wage less a few days.
 
As long as the redundancy part is tax free that's ok.

The taxable parts should be your wages, bonus, holiday pay, time in lieu of notice etc

Add all those up and as long as they are under £3532 in the month then take off £883 and times the rest by 20% that will give you the tax due

Edit : to work out your NI take off £672 and x 12%
 
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qqg3 said:
Hmmm, I'm probably a moron but I don't get it. I have the non-taxable bit sure. But then there is the taxable part I don't know how much tax there should be on it. Likewise, my last month wasn't a full month so I don't know how to figure out a months wage less a few days.
Click to expand...

FYI PILON is not included in the tax free amount.
 
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