AIBU to think I might get heavily taxed?

[Ethicaldebacle]

Morning ladies!

Any accountants that can clarify this for me?

I was made redundant and they won't pay a lump sum, so I'll be part of their payroll through my notice (now gardening leave).

In case I get lucky and find a job soon, what would be the tax implications? They told me I'd have to tell the new HR team that my new role is my "primary job" but I'll effectively have two jobs, and I believe one is heavily taxed. So how would it actually work?

Thanks!

Because I would have two pay cheques from two companies that if added on an annual basis it would be north of £130-140k

During the overlap period you will be taxed at a higher rate in one of the roles. Once you get P45 through from current employer, your tax code at new job will be adjusted and any overpaid tax will work itself through with a refund if necessary from HMRC at the end of the year.

Have your current employer confirmed you can work for another employer during this period of gardening leave?

Yes, that has been confirmed

I prefer garden leave if it means you're supposed to sit in the garden and do nothing, as opposed to doing the gardening.

😂 love it!

OP if you don't already have a personal tax account you should set one up now. Makes it much easier to check your tax.

https://www.gov.uk/personal-tax-account

Your annual salary won’t be adding the two salaries together as you are only on three months gardening leave. By the time you start new job and get first paycheck there may not be much overlap.

I reckon it would happen for 2 month at most.

I don’t think she’ll be “landed with a tax bill”
as when I was made redundant the tax I paid that year was wrong, but I was sent a letter to say my tax code would be changed to recoup what I owed, so my personal allowance was lowered. In other years when I paid too much I’ve been able to get it refunded. You could always ask your old employer to pay it all into your pension if they have salary sacrifice, I don’t think you’d pay tax on it then.

Redundancy payments and settlements are but payments for PILON aren’t, as they’re ordinarily taxed

Are you saying that’s what you’d like to happen? They aren’t tax free above £30k.