Thanks budfrog, but that example assumes that the person doesn't work for the rest of the year, or only has a small income like JSA.
If one is receiving a RM pension or gets another job, then 40% tax would be paid for the rest of the tax year. I got VR in June. I was already taking my RM pension, and after VR I was deducted 40% tax. That actually continued in the following tax year until HMRC amended my tax code and I got a refund for that year.
Also I got a temp Xmas job for 2 months in the year I took VR and paid 40% tax on my wages of £7.50ph.
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