receiving lump sum

[Connemmara]

Can any of you work this out.

If you receive £6,200 and have to pay back tax of £2,000 leaving £4,200 - this is for 10 years of monies paid into a work fund

What tax would I have to pay using above monies but for 17 years of monies paid into a work fund.

Thanks (it is the tax I am interested in)

[factor-fiction]

If the money paid in was paid in at the same rate over 17 years the amount paid in would be £6200 x17/10= £10540 (an increase of £4350).

The tax position is less clear. If your figures are exact figures I can't see how the £2000 relates exactly to the £6200. If we assume tax is paid at the same rate the tax will also increase by a factor of 17/10 from £2000 to £3400.

However as the tax rate seems to be more than 20% I think some of your income may have been taxed at 40%. Therefore it's possible that the additional £4350 will be taxed at 40% (£1740).

So it depends on the tax rates that would apply

[Connemmara]

thanks factor 30 - yes you are right £2,000 exactly was taken from my friend's lump sum and we did work it out to be 20% which we thought was wrong too. But that is exactly what they took

[Connemmara]

sorry meant to say it was 40% - do you think she should look into that.

[Connemmara]

I think it should £6,200 divided by 10 years multiplied by 17 gives you a different amount. the same for the tax. ta ra