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Nov 2020
10:31am, 24 Nov 2020
27,394 posts
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HellsBells
I can’t check as I’d have to go and ferret out my government gateway log in details and as we’re currently the study into a spare bedroom and vice versa, I have no idea where in all the piles of stuff those details might be located
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Nov 2020
10:57am, 24 Nov 2020
370 posts
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Shades
EP - good for you having another go. My friend finished the first time, then DNF'd the 2nd and I think she was shocked that she didn't finish. She's going to have another go.
um - I too opted out of SERPS in the 90's and opted back in when advised to, can't remember when that was. Anyway the SERPS went into a private pension and that matured when I was 60, pays me £110 a month which considering it cost me nothing extra was a good deal. I have full state pension entitlement, can't claim yet though.
HOD - that's their headache, let them worry about it.
Vrap - that's good news.
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Nov 2020
11:49am, 24 Nov 2020
169 posts
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JogWalker
Eek. Bit of a surprise today. HMRC asked me to complete a Self-Assessment return for 2019/2020. I took early redundancy after 34 years and was always PAYE. I had nearly a full year’s salary and with my redundancy payment my total income for the tax year was just above £100,000. Given I was PAYE I couldn’t understand why HMRC was asking for a self assessment. The calculation showed that I HAD A TAX BILL TO PAY. I was aghast to discover that as I breached the £100,000 I completely lost the full tax free allowance of £12500 for the tax year. Nothing I can do about it now.
Please be aware.
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Nov 2020
11:56am, 24 Nov 2020
37,533 posts
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♪♫ Synge ♪♫
I'm sure you've checked, JW, but isn't the allowance forfeited on a sliding scale? I've never been in that position, but it would be odd of you could earn £99,999 and have the allowance, but earn £100,000 and completely lose it.
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Nov 2020
12:04pm, 24 Nov 2020
3,720 posts
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um
JW - I think a self assessment is triggered for anyone earning over £100k, PAYE or not.
As per Synge, the loss of personal allowance is on a sliding scale, £1 for every £2 over £100k. So you would need to earn more than £123k to completely lose it. And typically recovered via tax code changes, so the employer is not directly managing that. Well, only responding to the tax code. Its your responsibilty (and penalty) if you don;t notify (via the self assessment).
However, £30k of redundancy pay should be tax free - and not included (I think) in your gross annual pay.
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Nov 2020
12:06pm, 24 Nov 2020
7,807 posts
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Too Much Water
I recently advised a friend in a similar situation to mitigate this by paying part of his severance package into his pension.
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Nov 2020
12:10pm, 24 Nov 2020
3,722 posts
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um
Oh - and for anyone in a similar situation, it's usually better to try and negotiate (if possible) redundancy falls into the new tax year.
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Nov 2020
12:11pm, 24 Nov 2020
7,808 posts
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Too Much Water
Agree the 30k will not be taxable pay but pay in lieu of notice and anything above the 30k will be
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Nov 2020
12:25pm, 24 Nov 2020
18,220 posts
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Bazoaxe
That is something I hadnt thought of if I was made redundant. I did know and if I ever had the choice would sacrifice as much as I could into my pension but depending on timing I could easily breach the £100k in a tax year
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Nov 2020
12:28pm, 24 Nov 2020
170 posts
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JogWalker
Thank you all. At least I have until 31 Jan to pay it.
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Jigs 
Any pension experts out there?
Oct 2024
