Tax question

Diagro · 7 Jul 2021 at 15:17

Hi all,

Quick Tax question for you all.

I finished working for a place on the 31st May.

The paid me three months wages (my notice period) in a lump sum as an agreed termination type deal.

This has then been taxed as if it was my normal monthly wage which is around £1600 too much tax paid if I compare it to my normal wage slips for 3 months paid monthly.

It's not just tax though, is Tax, NI and student loan.

Can I claw back this over payment in tax? If so, how do I go about doing it?
I've been told to wait till April, and it will all work out, but I don't really want to wait till April... I would like what I'm owed now...

Thanks

Diagro · 7 Jul 2021 at 15:57

peterwalkley said:
I'm not going to pretend to know the answer .... but surely whether its an overpayment depends on what happens next. If you remain jobless until the end of the tax year, then yes its likely you have overpaid. If you walk into another job tomorrow paying a similar salary then I suspect not an overpayment at all. Also, were there any taxable benefits involved (private heath care, car allowance, etc).

I won't be employed till Sept 1st.

So no more income till then

Diagro · 7 Jul 2021 at 16:28

dLockers said:
Are you a higher rate tax payer?

Not quite.
34k annual.

But that month, I got approx 7.8k paid pre tax which is well above the 40% threshold (if they assume I get paid that every month)

Diagro · 7 Jul 2021 at 19:16

Semple said:
I think the tricky one might be claiming back your SL contributions.

I've already looked into that. It's only a small over payment it seems for that, which I'd happily leave alone.

The tax is the biggest one.

Diagro · 7 Jul 2021 at 19:17

rubberduck said:
Will get it paid back at end of year. Probably not SL though.

Probably, but I don't want to wait till April lol.

Diagro · 7 Jul 2021 at 20:53

theone8181 said:
Would it matter with student loan, surely it will just be paid off marginally quicker?

Well yea, as I don't earn enough to even reduce it by £300 per year due to interest. And it's 32k... so, never being pad back

Diagro · 16 Jul 2021 at 19:59

Update.

Gave my current temp employer (few weeks cover teaching) my P45.

Got a £250 tax rebate in my last pay...

Which is not enough. Possible it's just a rebate from the over paid tax with this employer due to being on BR rate. I'll wait for next weeks pay then call hmrc and check if no further refund comes through.

Diagro · 17 Jul 2021 at 14:40

flea.rider said:
yes you can claim it back or wait till end of yr for a tax rebate .. .. end of yr would be better as you might get a job over the threshold .. ..

I won't get a job like that. Only on main pay scale for teachers.

Diagro · 18 Jul 2021 at 13:26

platinum87 said:
The joke is tuition jumping from £3k per year to £9k per year instantly.

The real joke, is the kids scammed into votes for lib dem on the promises that tuition would not increase.
For it to then TRIPLE!