You won't get 1500k lump sum

[2chorizon]

That's right you will not get anything like £1500 lump sum.

1. It is taxable

2. It is the very beginning of the new tax year

On the week you get paid out the £1500 lump sum + wages HMRC will assume you are now earning around £2k per week and will heavily tax you assuming that is your weekly gross for the new finacial year going forward.

They will deduct £500+ from that phat weeks payout.......

Then you will scream.......and rant down the phone.

Then for the next 5-6 weeks you will pay low or zero tax until you claw back that initial savage deduction.........

So you will eventually pocket the £1500 lump sum but YOU WILL NOT recieve it in anything like one lump. #CaveatEmptor

[mjd24]

Is that true? How do you know this?

[FirstPost]

I'm only accepting fully backdated

[Cedar_Room]

I’m waiting on Filthy Lens feedback on this. They’ll know the score!

How much are we getting? Simon & Ricky wouldn’t sell us a pup,right?

[stevejm]

I'm only accepting fully backdated

You'll accept what you're given. Know your place. You have no power ...... because the Union don't listen and are with vested interests themselves.

Which do you think is more important to the Union ?
a/ a decent pay rise including back-dated
b/ that they still have influence in the work place and can continue to collect subs

[RobertT]

The normal rate of income tax and NICs on £1500 is likely to be around £500 anyway, for a basic rate taxpayer.

Although it'll vary with the individual to some degree, due to other earnings.

[redlen]

That's right you will not get anything like £1500 lump sum.

1. It is taxable

2. It is the very beginning of the new tax year

On the week you get paid out the £1500 lump sum + wages HMRC will assume you are now earning around £2k per week and will heavily tax you assuming that is your weekly gross for the new finacial year going forward.

They will deduct £500+ from that phat weeks payout.......

Then you will scream.......and rant down the phone.

Then for the next 5-6 weeks you will pay low or zero tax until you claw back that initial savage deduction.........

So you will eventually pocket the £1500 lump sum but YOU WILL NOT recieve it in anything like one lump. #CaveatEmptor

Caveat Emptor equates to buyer beware.

Since when are we buying anything as it is being given the lump sum?

[Cedar_Room]

That's right you will not get anything like £1500 lump sum.

1. It is taxable

2. It is the very beginning of the new tax year

On the week you get paid out the £1500 lump sum + wages HMRC will assume you are now earning around £2k per week and will heavily tax you assuming that is your weekly gross for the new finacial year going forward.

They will deduct £500+ from that phat weeks payout.......

Then you will scream.......and rant down the phone.

Then for the next 5-6 weeks you will pay low or zero tax until you claw back that initial savage deduction.........

So you will eventually pocket the £1500 lump sum but YOU WILL NOT recieve it in anything like one lump. #CaveatEmptor

Caveat Emptor equates to buyer beware.

Since when are we buying anything as it is being given the lump sum?

I knew you’d put my mind at rest. Thank you Filthy Len

[FirstPost]

I'm only accepting fully backdated

You'll accept what you're given. Know your place. You have no power ...... because the Union don't listen and are with vested interests themselves.

Which do you think is more important to the Union ?
a/ a decent pay rise including back-dated
b/ that they still have influence in the work place and can continue to collect subs

Then they lose yet another sub

[milly]

That's right you will not get anything like £1500 lump sum.

1. It is taxable

2. It is the very beginning of the new tax year

On the week you get paid out the £1500 lump sum + wages HMRC will assume you are now earning around £2k per week and will heavily tax you assuming that is your weekly gross for the new finacial year going forward.

They will deduct £500+ from that phat weeks payout.......

Then you will scream.......and rant down the phone.

Then for the next 5-6 weeks you will pay low or zero tax until you claw back that initial savage deduction.........

So you will eventually pocket the £1500 lump sum but YOU WILL NOT recieve it in anything like one lump. #CaveatEmptor

Of course you will pay tax on £1500 and it will even itself out over the year.
If you want to mitigate how much Tax and National Insurance you pay then contribute to an AVC.
Only on this site could someone complain about receiving £1500 .

[mjd24]

The normal rate of income tax and NICs on £1500 is likely to be around £500 anyway, for a basic rate taxpayer.

Although it'll vary with the individual to some degree, due to other earnings.

So £1500 in my pay packet one week will have £500 tax and NI deducted? I get quite confused by income tax. We dont get taxed on the first £12500 we earn, is that correct? But i assume they spread that out over the year so . . . basically i dont get it

[posted]

The normal rate of income tax and NICs on £1500 is likely to be around £500 anyway, for a basic rate taxpayer.

Although it'll vary with the individual to some degree, due to other earnings.

So £1500 in my pay packet one week will have £500 tax and NI deducted? I get quite confused by income tax. We dont get taxed on the first £12500 we earn, is that correct? But i assume they spread that out over the year so . . . basically i dont get it

I genuinely thought OP was teaching us to suck on eggs as it’s plainly obvious we would get taxed at the appropriate rate for that pay period.

Yes personal allowance is £12570. If for example (an extreme one) you earned all that in first week of tax year, you would be taxed as though you were earning ~£650k\year. Now if you didn’t earn anything for the remaining 51 weeks then at the start of the next tax year you would be owed a refund of the tax paid in week 1.

The personal allowance is spread over the year based on your pay period (weekly/monthly/4 weekly etc). So if you cross the PA threshold in any pay period you pay a higher rate but then cumulatively it balances itself out over remainder of year

[gary1975]

When have we not been taxed on bonuses lump sums Xmas etc,par for the course, bag of sand after deductions

[k979aaa]

Back pay is just giving money away consolidated increase will help stopping our job becoming minimum wage even £500 consolidated is worth more than £500 in the hand now is worth more than next year!

[FilthyBloke]

But isn’t this the same scenario if we get any back dates pay?
Either way, I’ll take the money now.