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Christine-cssm
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GA-crb Good Morning; I was made redundant: my employer elected to

Customer Question

Good Morning; I was made redundant: my employer elected to pay me three months salary in lieu of notice: this has been paid as a single payment. I believe they have calculated my PAYE as thoughI have received one month's salary plus a bonus equivalent to two months, thus I've gone into the Higher Rate band. Should they have calculated and then paid me as three separate months and then timesd it by three to give the lump sum ? Thank you, ***** ***** for your help.
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
HI
Thanks for your response
No they have calculated this correctly as you are liable to tax when you are paid, not from when (or to) the payment is due.
However there are methods in which this will be readjusted to create refunds (if you end year position will be of one that sees you actually a basic rate taxpayer) So can you advise
1) Will you be making a claim for Jobseekers Allowance
2) Will you resume work - and have a start date
I can then advise how this refund will make this way back to you
Thanks
Sam
Customer: replied 1 year ago.

Thank you for your helpful - but 'financially disappointing' - reply. At this stage, I will not be seeking Jobseekers Allowance and IF I can get re-employed again in the current financial year, I hope it will be in a job that puts me back into the Higher Rate.

Expert:  Sam replied 1 year ago.
Hi
I can appreciate the frustration having to wait for this money (which is yours by right) but let me advise how the refund will be made
Assuming you have no other income coming to you -
1) If you did claim Jobseekers allowance at £112 a week which you are entitled to for at least weeks due to contributions based National Insurance contributions and is paid for up to a max of 6 months, then the refund is amde when you sign off JSA (Jobseekers allowance) or 05/04/2016 - whichever comes first
2) If you take up employment - then on the first payday (and each one until your tax position is accurate) a refund is made to level matter out
3) after 4 weeks of not working and not claiming JSA you have the right to claim an unemployment refund from the tax office by completing form P50 link here https://www.gov.uk/government/publications/income-tax-claiming-tax-back-when-you-have-stopped-working-p50
and sending this completed form in with your P45 Parts 2 and 3
4) Do nothing and if you do not work or claim benefits or claim the unemployment repayment from HMRC then year end HMRC can make any overpaid tax repayment to you.
However - your final sentence in your last response stated -
I hope it will be in a job that puts me back into the Higher Rate.
Then there may not be any refund at all - (other then that which is created by unused personal allowances from now until the first pay day in any new employment) as you did not indicate initially that you were usually a higher rate taxpayer anyway as you advise the large 3 month payment put you into the higher rates.
Let me know if I can be of any further assistance.
Thanks
Sam
Customer: replied 1 year ago.

Thank you for your helpful - but 'financially disappointing' - reply. At this stage, I will not be seeking Jobseekers Allowance and IF I can get re-employed again in the current financial year, I hope it will be in a job that puts me back into the Higher Rate.

I see that you have replied, but can't get your answer to open after I've agreed to the Disclaimer...........

Expert:  Christine-cssm replied 1 year ago.
We received your customer service inquiry, however, we are unable to respond to you because we do not have your email address. Please contact customer support at***@******.*** and provide us with your email address and a link to this question page so that we can help you.
http://www.justanswer.co.uk/tax/981kq-good-morning-made-redundant-employer-elected.html
Thank you, ***** Support Team.

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