Pidge0123

Sorry the payment was made at the end of April, so from what I have read that means it is part of the new tax year? The payment was made in FY24/25

Hi all! Looked over a few posts and other sites regarding this but can't quite figure it all out so after some help please! So I was made redundant end of March and have just received my payslip regarding my redundancy pay. It's broken down to more sections in my payslip/agreement but for help see figures below: £30,000 - non taxable £17,000 - subject to tax £13,000 - subject to tax and NI £3,500 - owed holiday pay - subject to tax and NI Now where I am getting confused is the income tax rate and what I should pay for that. Let's say for argument sake I don't take another job in this tax year - what income tax should I pay and at what rate? Would this take into account all 'earnings' in this tax year which would be circa £64,000 and so some subject to higher tax bracket (40%)? Or would it only look at the taxable part, which would be circa £34,000 and keep me in the lower rate tax bracket (20%)? Payslip is showing £14,000 income tax, which I assume has based it off of last tax year and some higher rate tax as I earned £80,000. It also has me on the 0T/1 tax code. Any help or advice greatly appreciated, thanks!