Jaroslaw Niewczas
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High tax in April due to redundancy - PILON, banked holidays, final salary
Hi, I have been made redundant from work and Arpil was my last month in employement. Along with my last April's salary, I have received my redundancy money, it is PILON, banked holidays payment, final salary etc. Now, I paid 38% tax for April's income, which is the first month of 2024/25 tax year, as I suppose HMRC thought that this will be my earnings every month this year. I also start new job in May. I have updated my estimated earnings on HMRC website about two weeks ago to avoid this situation, it did not change anyting. According to wage calculator I have paid income tax and NI for a whole 24/25 year already and just in one month, April. Now I should be paying nothing or maybe £50-100 tax and £10-20 NI every month for the rest of they year, it is next 11 months. My earning estimates included overtime that I am not sure that I am going to work anyway, but I wanted to give higher estimate just in case. What can I do about it? Will I have to wait till end of this tax year to receive refund from HMRC or I won't pay tax at all for rest of the year? Thank you, Griellwe