Decided to take my holiday pay.
Not alot in there, 900 quid/61.5 hours, but enough to make a difference.
Had a word with the boss and he recommends to take 10 hours a week for the next 6 weeks.
I’m ok with that, I don’t need to take it all at once I just think, at this time of year, it’s better in my bank than theirs.
Is this a good plan, you think? Or could I arrange it better to eva…avoid tax?
Thanks.
Don`t make any difference you will still pay tax holiday pay or not
Yerp, cheers lol, that’s what I thought too. My flat week top line is about 600 and anything after about 160 is taxed anyway.
Just wondering, can I divert it into a health plan? or a wage protection scheme? Hmmmm. Thinking now.
Done this before and just increased my pension percentage. Rather it goes into my pension than the tax mans pocket.
Splitting it might be a good idea. If you take it all at once it will put you into the 40% rate for that week. The cutoff is £891. It will even out and you will get it back, but it might be better to avoid the complication.
steviespain:
Yerp, cheers lol, that’s what I thought too. My flat week top line is about 600 and anything after about 160 is taxed anyway.Just wondering, can I divert it into a health plan? or a wage protection scheme? Hmmmm. Thinking now.
Neither but sticking it in your pension will make it tax free. I’m currently in the fortunate position of being able to put everything I earn above the personal allowance into my pension thus making my wages tax free. Good job really because I had no pension until the workplace pension came into being and until a year ago only had £1000 in that and retirement is now just a mere 20 years away. Downside is you won’t be able to touch it until you’re 55 and decide to draw down your pension.
Santa:
Splitting it might be a good idea. If you take it all at once it will put you into the 40% rate for that week.
Not unless he’s earned into the 40% rate for the previous 40 odd weeks of this year. You don’t get put into the 40% rate just because you earn over £800 odd quid in a few weeks. You need to have been near the weekly level for pretty much every week up to that week to have that happen and even then if you’re not near it in the following week the tax will rebalance.