Calculating tax on notice pay (3 months notice)
Calculating tax on notice pay (3 months notice)
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TonyRPH

Original Poster:

13,539 posts

198 months

Monday 12th November 2018
quotequote all
My o/h was recently made redundant and has just received her final notice pay.

She was given 3 months notice, and it looks as though the 3 months pay has been lumped together and taxed as a single month, is this correct?

We had expected that the tax would be calculated as normal months?

Thanks.

rsbmw

3,466 posts

135 months

Monday 12th November 2018
quotequote all
Because it's in one pay period, it counts as one payment. Will all be worked out at the end of the year, but if she has a 3 month gap between jobs she could call HMRC and they may sort it in-year.

TonyRPH

Original Poster:

13,539 posts

198 months

Monday 12th November 2018
quotequote all
I see thanks.

I guess that means she should see some kind of rebate over the next tax year then?

Marcellus

7,204 posts

249 months

Monday 12th November 2018
quotequote all
When she submits her return if it’s a large amount owed you can often ask for payment of it.