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Tax on your VR payment
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stroller
- Posts: 127
- Joined: 12 Jun 2013, 17:31
- Gender: Male
Tax on your VR payment
How much tax do you pay over £30k on your VR payment 40% or 20%?
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RobertT
- EX ROYAL MAIL
- Posts: 6694
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Tax on your VR payment
Tax will be paid at your marginal rate. Which basically means that anything over the £30k tax free limit will be classed as income and added to any other income you’ve earned in that particular tax year.
If your total income(not including the £30k) is more than £45k then you’ll pay tax at 40% on the amount that’s over that limit. Otherwise it’s 20%.
https://www.gov.uk/income-tax-rates/cur ... allowances" onclick="window.open(this.href);return false;
In practice most posties won’t pay tax at the 40% rate.
If your total income(not including the £30k) is more than £45k then you’ll pay tax at 40% on the amount that’s over that limit. Otherwise it’s 20%.
https://www.gov.uk/income-tax-rates/cur ... allowances" onclick="window.open(this.href);return false;
In practice most posties won’t pay tax at the 40% rate.
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