I resigned from my job, gave my notice the 30th September and left the 31 October, a month as required. When I got my final payout they had deducted an excessive amount of income tax. When I queried it I was told that the payroll company calculates tax in advance and when I left they deducted what was left for the year. Is this allowed? Doesn't sound right as I didn't get the money so how can they tax me on it. Also I earned hourly and my tax fluctuated as my pay did so how can they say its calculated for the year in advance if it changes every month?