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Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have just had my contract terminated and at the meeting

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I have just had my contract terminated and at the meeting it was agreed that I would be paid till the end of February plus my March Month's pay. Normally I would clear £1942.57, however I have just received my payslip and they are saying that I have been taxed at 40%, my annual salary is £30,000 per year and before tax I earn £2500, therefore the amount was £5000 they have also deducted 0.5 days holiday from me . could you give me a call please to clarify what I should be taxed as I understand that I could earn up to £32,000 ( minus £10,000 tax free allowance) before being taxed at 40%. My contact details are *********** - thanks Jean Freestone

Hi Jean

I am afraid we cannot call you - do you wish to proceed with your question?



Customer: replied 3 years ago.

Yes please respond via email.

Customer: replied 3 years ago.

Please reply asap as I need to respond to my company and it depends on what advice you give me. thank you.


Thanks for your response - you will receive and email advising that your wuestion has been answered, but will, as you have discovered need to log backl onto JustAnswer. and view the response via My Questions on your account.

Its correct that you have been taxed but should only have suffered the 20% basic rate tax on this pay in lieu position,however if this has been made in isolation from the main salary run, then the seemingly additional tax may well be due to the fact no personal tax free allowances have been allocated, so on £5000 you would have suffered £1000 tax and only have received £4000

Could this be the case?

If not - and you have been alocated personal allowances, and your payslp does show a 40% tax suffered, then you have two choices

1) Go back to the employer and insist they rerun this final pay with your highest rate of tax (which is 20% nasic rate) or

2) If you are not planning to work again then you can ask HMRC to review the position for you after 05/04/2015 - by sending in a letter and the P45 (keep copies for your own records)

As for the 0.5 half holiday day, this is entirely a matter between you and the employer - but if you feel this is incorrect then ACAS are a body who can liase with your employer for you -

see link here

Let me know if I can be of any further assistance with this matter.



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