How is tax calculated on payment in lieu

[floral2027]

I was dismissed yesterday as company is downsizing.

I will get 3 months payment in lieu plus the 11 days I worked in October plus 4.4 holiday days. My yearly salary is 46k. Am trying to calculate how much this is after taxes and NI.

Don't qualify for redundancy as have been working there 21 months.

When I was dismissed with similar circumstances I paid tax as a lump sum that month

You will need to call HMRC.

If they see the lump sum, they will assume that is your new monthly earning and will likely tax you to reflect that. As tax is applied to total earnings in a financial year, the amount you will be liable for will depend on when you start earing again and the salary you are getting for the rest of the financial year.

How do I call hmrc. I mean do I tell them before or after I receive the payment

I have used up my personal allowance but don't think it exceeds 50k this year.

April to September is 6 months. Which is 23k. And then this is 14k (lump sum). So it's not yet 50k

So was it subject to 40% tax?

Your personal allowance is normally spread over 12 months. Anything you receive this month above what you normally earn will mostly be taxed at the higher tax rate. I would have thought that any rebate would then depend on what you earn for the remainder of the tax year and when you get a new job your tax code could be adjusted. But call HMRC, they’ll let you know what, if any, options you have.

Is it a statutory redundancy payment, or just pay in lieu of notice?

https://www.gov.uk/redundancy-your-rights/redundancy-pay

statutory redundancy pay is tax free up to £30k

Just payment in lieu of notice

As I earn below 50k I don't get taxed 40%

You will be taxed on the payment in lieu using your current tax code.

Add up all your income for the month then You can go and work it out in one of the take-home pay calculators online.