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When to time my KIT days around tax year end?

2 replies

PlutoAjder · 20/11/2019 11:26

Every penny counts on mat leave, and I'm due back after a year off on 23rd April 2020.

The maternity year off (tax year 2019-20) has pushed me into being a basic rate tax payer. When I'm at work full-time, I'm a higher rate tax payer as I earn £50k.

My manager doesn't care when I do my KIT days as long as I've done mandatory training before my formal return on 23rd April 2020.

I've just realised, probably being a bit of an idiot, that if I just go in for the 10 days in the weeks leading up to my return... I'll end up paying more tax on the KIT days because they'll be taxed in the 2020-21 tax year.

But then I get paid monthly so maybe it doesn't matter.. since if I work them in March I'll technically get literally paid for them at the end of April.. so maybe I shouldn't overthink it and I should just do them when suits in April?

Am I missing something?
A bit of advice on how earnings from working a few days in March is managed from a tax pov would be helpful, I'm a bit clueless about how falling near the tax year crossover works!

OP posts:
BarbaraofSeville · 20/11/2019 22:22

It doesn't matter when you do them as the tax allowance for higher rate is now £50k so if your salary is exactly £50k, you won't pay higher rate tax.

Plus if you pay pension contributions, you'll be well below that limit, even if you have a reduced allowance due to a company car or other benefits.

PlutoAjder · 21/11/2019 20:50

Sorry I should be clearer if the band has changed, I earn 50k basic and typically get a 5-8k yearly performance bonus. So I will nudge into the higher rate even if it's changed

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