Help with tax on payment in lieu please?

[Newmumin2017]

Hi all, wondering if there is anyone here who works in payroll/HR or just generally knowledgeable about this could kindly help please?

I am changing jobs but will be paid 8 weeks in lieu of accrued holiday pay. Due to payroll cut off, the holiday pay will actually be sent the month after my leave date so I will receive that and my first pay from my new job in the same month. This would take me into a higher rate of tax that month.

Can anyone tell me if there are any major disadvantages to this please? My alternative is to stay technically employed but on leave and push back the start date with my new employer which is a much higher salary so I would prefer not to.

Many thanks!

Oh I should also say I have had some maternity leave which fell in the current tax year and was then only receiving SMP so I am thinking at the end of the tax year will it all be looked at as a total received over the year then possibly a refund on the basis of the low paid months?

Yeah you might take a hit on tax that month but it should even itself out over the rest of the year, or you'll get a rebate.

Thank you, this is what I was thinking, but wanted to check I wasn't missing something!