Michael W Posted August 9, 2022 Share Posted August 9, 2022 (edited) 3 hours ago, stevoraith said: Yes, but he has a two year contract. So if he’s on £1k a week he gets £52k in a year and is liable for 40% tax on about £9k of that (for both years). if we pay him off in one go he’ll get £104k and be liable for 40% tax on £61k. So if we pay him off in one go his higher rate tax liability is about £24k, but if he gets paid monthly for two years it’s only £7k. He’d be daft to accept a pay off that will cost him £17k. It will cost him now, but he'll get it all back. Edit: or, at least, the vast majority of it. You start losing your personal allowance at £100k. Edited August 9, 2022 by Michael W 0 Quote Link to comment Share on other sites More sharing options...
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