From: uknewsfan 
Newsgroups: uk.finance
Subject: tax and pay arrears
Date: Wed, 30 May 2007 14:38:16 +0100

Afternoon, 

some of you may have heard about the NHSpay deal called agenda for
change, in which jobs were banded and lots of people,including me,
were banded too low and then appealed, and are now owed back pay.

The money owed to me is about 5k gross, and dates back to March 1st
2005. The total is made up of monthly underpayments, missing out on
increments, pay rises etc between then and Dec 31st 2006. I left the
post on that date

I am expecting to recieve the money in July.

Now, as I have recieved P60's for 04/05, 05/06 and 06/07, I am
wondering what tax rate I can expect to be hit with on this lump sum
payment ?

My salary was over 40k with the employer concerned, but as they have
not paid me anything this financial year, and have no idea of my
present salary,  should deductions be at basic rate, or will they be
at 40 %, because of my salary at the time the back pay was accrued ?

I am hoping the lower rate, short term gain etc, in the knowledge I
will have to settle up with the taxman in the future.

Regards

......................................................
Manchester United....world class against the mediocre, 
mediocre against the world class.....