This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Retirement termination payment in April - excess tax?

Incredulum
Posts:2801
Joined:Thu Dec 03, 2009 5:35 pm
Retirement termination payment in April - excess tax?

Postby Incredulum » Tue Apr 29, 2025 8:34 am

An individual is receiving a significant payment in his final, April, pay packet.

Needless to say PAYE assumes this one twelfth of his annual salary and so the tax is painful.

Is there a way to get the tax back more quickly than either in his tax return, or by making him a £1 salary payment for the next 11 months?

Thanks

bd6759
Posts:4499
Joined:Sat Feb 01, 2014 3:26 pm

Re: Retirement termination payment in April - excess tax?

Postby bd6759 » Tue Apr 29, 2025 10:14 pm

Not sure how he can get paid £1 if his employment has ceased? If not ceased, why £1. You could use £0.

If permanently ceased it’s a p50

https://www.gov.uk/guidance/claim-back-income-tax-when-youve-stopped-working


Return to “PAYE and Payroll Taxes, National Insurance, NICs”