Taxed Redundancy Pay

[edition]

Hi

Can you claim back tax that’s been overcharged before the end of the year or do you have to wait?

Example:

Yearly wage approx 45k, gets made redundant 2/3 months into the tax year but final pay (inc redundancy pay ) gets taxed at 40% rate (first redundancy 30k wasn’t taxed).

Many thanks!

[Countdown]

I’m pretty sure you have to wait. Tax is cumulative, HMRC won’t know the overpayment until the end of the tax year.

If you get another PAYE job before 31st March it might get adjusted via your tax code.

[LeoSayer]

Both my wife and I were made redundant in December and we both overpaid tax.

My wife got a refund email from HMRC last month, claimed the refund and got the money back about a week later.

I'm still waiting for my email. I heard it can take until September.

[Spitfire2]

edition said:

Hi

Can you claim back tax that s been overcharged before the end of the year or do you have to wait?

Example:

Yearly wage approx 45k, gets made redundant 2/3 months into the tax year but final pay (inc redundancy pay ) gets taxed at 40% rate (first redundancy 30k wasn t taxed).

Many thanks!

If you know you won't be earning rest of the tax year it is simple to claim excess back. I chucked my job end of November with no intention of working. Filled in online form. Called to chase up a few weeks later. Refund received about 10 days after that.

[edition]

Thanks for the responses.

Have another job but on about half the pay of the previous job.

Phoned HMRC and they agreed that it’s been over payed at this point and to write a letter to them with all redundancy documents and they should refund asap.