Will I be heavily taxed this month due to double pay?

[redrabbit29]

Hi,

I just changed jobs and my situation is this:

Old Job: Basically paid me an entire months pay due to lots of leave I never managed to take

New Job: A lot better salary + £5000 sign on bonus

Also payroll did not have my P45 as I had to wait to the end of the month to get it from my old job

Unfortunately my pension for this month has already been put through and so I am unable to divert some of this money to that.

My question is, will I now get a massive tax deduction based on all of this combined, plus of course there not being a P45 so it will be emergency tax or something?

Thanks

[nickfrog]

Just to reply on the pension front, nothing prevents you from clawing back pension tax relief in the months to come.

[redrabbit29]

nickfrog said:

Just to reply on the pension front, nothing prevents you from clawing back pension tax relief in the months to come.

That's helpful and I meant to ask about that too - thanks!

I was told by the pension broker person that the company provide:

Your contribution will be net of basic rate tax and deducted from net pay. Once received by the pension provider, it will receive basic rate tax relief. If you are a Higher or Additional Rate Tax Payer you will be eligible to reclaim additional tax from HMRC.

In regards to this then, is it quick and easy to get the tax back or is it a bit tedious or takes a while? I calculated a lot of my expected figures using the salary calculator so just trying to guage it all in advanced.

[Philvrs]

When i left a job with a lot of leave paid on the final pay, the tax taken was a lot.
When i started my next job a month later, my tax deduction was negative, so my first payslip net pay was higher than gross. It should even out once the P45 is processed.

[Countdown]

redrabbit29 said:

That's helpful and I meant to ask about that too - thanks!

I was told by the pension broker person that the company provide:

Your contribution will be net of basic rate tax and deducted from net pay. Once received by the pension provider, it will receive basic rate tax relief. If you are a Higher or Additional Rate Tax Payer you will be eligible to reclaim additional tax from HMRC.

In regards to this then, is it quick and easy to get the tax back or is it a bit tedious or takes a while? I calculated a lot of my expected figures using the salary calculator so just trying to guage it all in advanced.

It's a little bit tedious. You'll have to complete a Self Assessment form.

Re: the tax issue you'll probably be taxed at 0T until Payroll get your tax code information from HMRC. However if it doesn't correct itself next month you'll be able to correct it via the self assessment form that you need to fill in.

[okgo]

Yes

This is natures way of telling you that you need a buffer elsewhere so these bumps don't matter