Tax question

[Invisimamma]

If I'm due to get paid a lump sum in lieu of notice and holiday pay, would it be beneficial for me to ask for this to paid in the April (next financial year) instead of March (this financial year)? Is there any tax benefit to making this request.

I'm worried if it's paid before the end of end the month it'll be whacked for tax, or is that not how it works?

Depends on your income this year and next. If you're unlikely to have as high an income next year, probably beneficial to have it paid after 6/4/23 as your marginal tax rate is likely to be less.

If it is paid in April you will be taxed as if you are going to get this amount each month for the rest of the tax year, it will right itself fairly quickly but it could put you in a higher tax bracket for a short time, depends on your earnings and how much.

Thank you. I earn around £32k. This payment will be about 3 months salary so will probably tip into the higher tax bracket. I'm thinking it would be better to get it paid in this tax year if possible then ,rather than them thinking I will earn this much every month (I won't!).

My husband is in this exact situation (with roughly the same annual income figures but we are hopitng for him to get it this tax year as we can then apply for ds's student finance on the basis of current income due to the percentage drop rather than the previous tax year