Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 27 Mar 2024 12:09:15 GMT by fogmiles
Hi, I have been made redundant and due to receive my lieu of notice and 2023 bonus after 5th of April 2024. My payment in lieu of full notice is £25,974.20 and my bonus payout is £24,106. I am in search of new jobs but didn't find one. I am a high earning individual whose per annum salary usually is above £100,000. In this scenario where I will be job less when both my notice pay and bonus are paid, how I will be taxed? As I will be paid in one go of about £51000, will there be any impact to the tax I will be paying? I opted out my pension plan last year due to personal reasons. Does it make sense in this scenario to opt back into pension plan and contribute some part of Bonus to save tax? I am not quite sure when I have a new job this year and may be I am also planning to take some time off. Appreciate your feedback, will be much helpful. Thank you
Posted Thu, 28 Mar 2024 16:49:19 GMT by HMRC Admin 25 Response
Hi fogmiles,
You would be taxed as normal as the payment is in the new year.
If not working for a period, you can apply for an unemployment repayment every 4 weeks until your tax is at the correct level or you return to employment.
HMRC cannot advise you on rejoining the pension as this is financial advise which we are not authorised to give.
Claim back Income Tax when you've stopped working (P50)
Thank you. 

You must be signed in to post in this forum.