Will I pay a lot of PAYE on this one off payment?
PencilBreath
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I was a team leader at tesco but they recently got rid of the role & one of the options was a one off payment of about £6.5k which is the difference between a team leaders wage & a general assistant over 2 years.
I accepted this & will be getting the payment in 5 weeks time along with my normal 4 weekly wage.
Will I have to pay 40% tax on this even though I am allowed to earn £10k or something before paying any paye?
Any one know much about this? Some people are saying I'll have to pay 40% tax on it which is a bit of bummer.
It may as well be in chinese if you go to the inland revenue website, I can't make head or tail of it.
thanks for reading
I accepted this & will be getting the payment in 5 weeks time along with my normal 4 weekly wage.
Will I have to pay 40% tax on this even though I am allowed to earn £10k or something before paying any paye?
Any one know much about this? Some people are saying I'll have to pay 40% tax on it which is a bit of bummer.
It may as well be in chinese if you go to the inland revenue website, I can't make head or tail of it.
thanks for reading
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Comments
ll figures are approximate, but that's the principal.
Tell me about it.
Provided you're not on a week 1 or month 1 tax code any overpaid tax will rectify itself as the available allowances and thresholds accumulate each subsequent month.
This is simply because we are at the start of the new tax year and your allowances for tax are accumulated monthly. You will get all the tax overpaid back over the next month(s) assuming your normal salary is below the 40% threshold, this will be automatic you need do nothing.
Here speaks a man who knows what he is talking about. ;-)
err except this one lol
Thanks. Why would you not be doing this be they are the people who pay your salary and take the tax on behalf of the government and will know the the actual answer to your original question.
That was probably the most sensible response.
I suspect that relatively few staff in payroll departments understand the tax system.
In large companies (like Tesco), the majority of them will almost certainly be nothing more than input clerks who enter the amount due to each employee, and the computer will then calculate the tax and NI deductions for them.
In addition, since the new tax year doesn't start until tomorrow, they won't yet have downloaded the revised tax allowances provided by HMRC, so I doubt that they could do a "dummy run" even if they were allowed to/wanted to.
You are assuming the people in the payroll department have an in depth understanding of the tax system.
33 minute echo ...
And??
... I would have acknowledged that a previous poster had already made a point with which I agreed.
That's just me though - I don't participate in threads believing that I'm the only one with something worthwhile to say.
In terms of accepting the demotion - personally I don't think it's a good idea. Obviously you have to do what is right for your personal circumstances but career-wise it is never good to go backwards. Surely Tesco would either have another team leader role in the store you work at or maybe another one nearby? If not I personally would be applying for a similar role somewhere else.
You have to have been dismissed for it to count as redundancy.
Here is a calculator that has a tab to add a bonus payment and you can see the comparison between the bonus month and normal months - http://www.thesalarycalculator.co.uk/salary.php
Depending on which NI category you are in, you may pay a little more than normal for some part and only 2% above 3489.
Pension may alter depending on your scheme.