How much tax should I be payng?

How much tax should I be payng?

Didn't find your answer?

I think I have paid too much tax. How much should be paid on the following?

Employment  1:

Pay: £118,656 (£70,000 of which a compromise agreement, so £30,000 is tax free)

Tax: £48,773

Employment  2:

Pay: £30,733

Tax: £12,865

Pension Income:

Pay: £46,354

Tax: £18,586

I think it should have been around £60,682

Replies (32)

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RLI
By lionofludesch
24th Dec 2014 09:34

Accountant

No offence - but you look like you can afford a couple of hundred quid for an accountant.

Have you listed all your income ?

And there's one absolutely crucial piece of information missing.  What tax year are we talking about ?

Thanks (3)
the sea otter
By memyself-eye
24th Dec 2014 09:37

Who knows?

What tax year are you talking about? What does your P45?P60 say? What benefits (if any do you/did you have) What other income - savings/dividends etc?

PS A 'please' might elicit a more favourable response - this is not the place for well remunerated folks to demand answers to questions they should take to a professional (and pay for)

Happy Christmas

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By bernard michael
24th Dec 2014 09:39

I agree - pay for an accountant

As a matter of interest does the pension total include the State pension?

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By qhas
24th Dec 2014 09:47

Tax payable
Is your middle name Skinflint ?

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By User deleted
24th Dec 2014 09:55

Isn't the answer, regardless of records and 'size of package', the correct amount?...

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By ShirleyM
24th Dec 2014 10:01

Maybe someone will be along shortly ....

... to offer you a tax avoidance scheme!

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By alberto1969
24th Dec 2014 10:03

No taxable benefits or expenses.

Age over 65

It is for the 13/14 tax year.

Employment 1 figures are from p45

Employment 2 from p60

I will hire an accountant (after Christmas) but wanted to be aware of roughly how much I have overpaid beforehand.

Many Thanks

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By Martin B
24th Dec 2014 10:05

Around £55k to £75k

Give or take £25k

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By User deleted
24th Dec 2014 10:13

How do you know the £30k is tax-free?

Who advised you that it would be tax-free? That same person ought to be able to advise you on your tax liabilities.

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Replying to Matrix:
By Ford
24th Dec 2014 22:29

what is going on?

I see nothing in the thread above about a tax free payment, but it is refererred to multiple times, have comments been deleted or am i missing something?

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By The Innkeeper
24th Dec 2014 10:21

Your previous posts

are all asking for free advice. You really should stop and instruct an accountant and pay for the service. We have all spent     many years gaining our experience and passing exams. I really do not see why any of us should be expected to give this valuable asset away for free.

PS Have you tried getting free advice from a lawyer ???

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By alberto1969
24th Dec 2014 10:21

Agreement was drawn up between employer and solicitor

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By alberto1969
24th Dec 2014 10:22

As mentioned I just wanted a rough guide not an exact figure or free advice

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By sosleepy
24th Dec 2014 10:27

Unhelpful forum

Some people on this forum are pathetically unhelpful.

From careful analysis of your figures and information given I can confirm that I could get your tax bill down to zero and get all the tax you've paid refunded to you. Just let me know your UTR, send me £5,000 and then I'll apply my expertise an submit your Tax Return. 100% refund guaranteed.

Probably should also mention that once the Tax Return has been submitted, you're on your own mate.

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By alberto1969
24th Dec 2014 10:37

Merry Christmas friendly people

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Replying to atleastisoundknowledgable...:
By mrme89
24th Dec 2014 10:40

You too

alberto1969 wrote:

Merry Christmas friendly people

 

Thanks (3)
RLI
By lionofludesch
24th Dec 2014 10:43

Very Close

Hey - it's Christmas.

You're very close - provided you've not omitted any information.

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By alberto1969
24th Dec 2014 10:47

No information omitted at all. I just wanted approx figure before going to an accountant as approx £19,542 is a lot to overpay

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By Lship
24th Dec 2014 10:48

Chritmas cheer & goodwill?

Seems to be missing....

Assuming everything you say is correct then somewhere in the region of £60,000 + a few £100s

If however the £30,000 turns out not to be tax free then its up at £74,000

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By The Innkeeper
24th Dec 2014 10:51

@alberto

£19542 is NOT approximate. It implies a high degree of accuracy. About £19500 is approximate

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By User deleted
24th Dec 2014 10:58

With those income levels ...

... are you not already filing self-assessment tax returns? If so, just file your 2014 return and any overpayment will be dealt with by HMRC.

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By J_G_W
24th Dec 2014 11:03

Assuming you have included everything, the figure you have put is pretty much there.

It's not uncommon for an employee to be overtaxed after a redundancy payment.

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By alberto1969
24th Dec 2014 11:09

Okay Thanks. Yes I submit self assessments - I have done myself most years as it as only been employment income section but this year (for 13/14 tax year) another section needs completing for lumps sums which I will get someone to do for me.

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By BigBadWolf
24th Dec 2014 11:14

£1234.56

You need to pay £1,234.56

 

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Replying to tonycourt:
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By alberto1969
24th Dec 2014 11:21

very mature

BigBadWolf wrote:

You need to pay £1,234.56

 

 

Very mature

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Replying to whitevanman:
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By BigBadWolf
24th Dec 2014 11:24

Very Kind

alberto1969 wrote:

BigBadWolf wrote:

You need to pay £1,234.56

 

 

Very mature

 

Very Kind of you to say so :-)

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By User deleted
24th Dec 2014 11:25

It's all guesswork

I can't make much sense out of the employment 1 tax figure - but given the amount it looks as though the whole £70k has been taxed. If the compromise agreement was drawn up with the employer, and they believed the £30k exemption to apply, why would they tax the full amount? As I say, though, even then the tax looks too high so there must be another reason.

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By Ford
24th Dec 2014 11:49

Rough Calculation

Back of a fag packet calculation you've overpaid by £6,000.

I'd happily help you out formally.

Ford

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the sea otter
By memyself-eye
24th Dec 2014 14:45

I overpaid once

In America, for petrol. Had to go back and demand a refund as I was working on UK prices not US ones.

This could work for you.

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By IanRiley
24th Dec 2014 23:18

more

Any pension contributions made? Any gift aid payments made?

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By Marion Hayes
27th Dec 2014 21:14

More missing information

A P45 has a date of leaving - unless it was 5th April tax cannot be reconciled. In addition was it used for starting employment 2.

Also, in my experience a compromise agreement is used when you can't agree and reaches the same net effect as if you had reached a redundancy deal which could have had the benefit of a tax free 30k.

I would need to see wording before I would think you might be due the exemption.

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By mjshort
28th Dec 2014 14:30

Tax free 30,000

Your biggest problem seems to be the 30,000 tax free or not?

Our friends at HMRC have given us EIM12855 and EIM12856 please look at them.

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