Can someone calculate my tax please?

[Sarahseyes]

I should be able to do this but I can’t see the wood through the trees.

My normal base salary is £52,000. I resigned 12 April, I have a 3 month notice meaning my end of employment should have been 12 July. However, I was PILON and agreed to leave 14 May. I received my normal salary payment for April.
May paycheque is as follows:
Salary £2000
PILON £8333
Holiday pay (14.5 days) £2900
Pension contribution -£80
Total pay: £12,953

I think I’ve paid too much tax and just want to check!

What income tax and NI should I pay?
I have a new job beginning in July that is £60k so I am just into HRT band after pension sacrifice.

What's your tax coding?

Have you received your P45 yet as this will reflect your taxable pay to date and the tax that have paid ytd? You should then be able to check whether you have paid tax over and above your personal allowance

If you have a new job to go to I'd also estimate what you think your total taxable pay will be during this current tax year and update your detail on the HMRC website accordingly.

128L is my tax code @nutgrabber
Gross pay to date is £17,133

Because I got paid bonuses in my last job the actual yearly pay isn’t too dissimilar. Around £1000 difference all in.

Have you tried using an online tax calculator to assess your tax liability?

I think much will probably give you more detailed idea eg www.moneysavingexpert.com/tax-calculator/

It sounds like you are on the higher rate tax threshold so key will be your pension contributions. If they are £80 per month then this will help but I suspect that you will pay 40% tax on any monies earned above £50,271.

So if you earn £52k this tax year in total, after pension deductions of £960 that will leave you with taxable income of £51,040. Obviously, the first £12570 is tax free (£12800 based on your tax coding though ). You then pay tax at 20% on your income from £12,571 to £50270 (£7540) and then at 40% on your remaining income above £50270 (£307) so £7,847 in total.

Obviously if you earn less or more than this amount it will impact your overall tax liability during 2021/22.

@nutgrabber thanks. I know my tax liability normally. I’m just wondering about this one off payment. I was taxed at 40% on it which I didn’t expect and would think id be entitled to a rebate. But I don’t know if I’m wrong.

@Sarahseyes - I think I misunderstood you early.

I'd check with HMRC as they probably think that your one-off May pay will be representative of your monthly pay ongoing.

I've suffer similarly when I receive my annual bonus in June. I have to log on to HMRC for my PAYE coding and adjust my anticipated income for the whole year to ensure that the tax coding properly affects my likely annualised income otherwise you will pay far too much tax every month ongoing although you will be able to reclaim the overpaid tax in the next tax year.

@nutgrabber yes I think that’s what has happened. It’s made me short as my PILON should have just been my normal pay plus the holiday pay to treat myself. But it’s meant I got less overall per month than normal DESPITE holiday pay. I wanted to know how much extra I may have been taxed, bevause then I know how much I can remove from savings knowing I’ll be able to return it.

Online calculators aren’t helpful for this!

You will have paid the correct amount of NI but overpaid tax. This will be corrected when you join your new employer and hand over your P45.

This is rough and you will need to add in NI.

£12,953 - £80 pension - NI ( as stated on payslip) = taxable pay
Taxable pay
Deduct £1067 (personal allowance) = no tax
The next £3142 is taxed at 20%
The remainder taxed at 40%

You will get £1067 = June’s personal allowance back plus up to 20% of £6284 of the remainder back. Easier to see when you have the actual figures.

HTH

Sorry that should say up to 20% of £3142 back.

[quote Sarahseyes]@nutgrabber thanks. I know my tax liability normally. I’m just wondering about this one off payment. I was taxed at 40% on it which I didn’t expect and would think id be entitled to a rebate. But I don’t know if I’m wrong.[/quote]
It is correct that the PILON payment would have 40% tax deducted at source as you are a higher rate tax payer and it would be taxed at your marginal rate.

This is simply the way the PAYE system works, the default is it effectively allocates 1/12 of your personal allowance to each month and it also “allocates” 1/12 of each tax band to each payroll month - if it didn’t people would be paying low tax at the beginning of the year and then higher tax as the year progresses.

In your case, the uneven payment obviously results in a potential overpayment on a year to date basis, but this will correct itself next time you are paid.