Redundancy Pay

nst68 · 1 Feb 2007 at 13:00

Quick question.

If you are accept voluntary redundancy, is the payment tax-free?

Have done some searching and found conflicting answers.

Cheers.

FordPrefect · 1 Feb 2007 at 13:23

I dont think redundancy payments are tax free wether its voluntary or unvoluntary. Take a look in your local phone book and speak to your local tax office they will know conclusively the answer to your question.

badgermonkey · 1 Feb 2007 at 13:25

nellystew said:
If you are accept voluntary redundancy,.

What?

iCraig · 1 Feb 2007 at 13:28

badgermonkey said:
What?

He obviously means "If you are to accept voluntary redundancy,"

It's really not that hard to read what he's asking.

alexakasloth · 1 Feb 2007 at 13:29

What's the difference between the outcome of voluntary, and going with a fight?

R0B75 · 1 Feb 2007 at 13:31

Yes, the initial redundancy payment is tax free. However, if they add an incentive to the redundancy package (large wodge of cash) to stay on a little longer, that is taxable.

dod · 1 Feb 2007 at 13:38

http://www.tax.org.uk/showarticle.pl?id=601&n=379

flump · 1 Feb 2007 at 13:39

AFAIK it's tax free to 33 (or 37) k, then after that, it's taxable.

CF93 · 1 Feb 2007 at 14:09

First 30k is tax free, anything over that is taxable.

Rotty · 1 Feb 2007 at 17:59

30k tax free , lieu of notice taxable

Loki · 1 Feb 2007 at 18:14

NI Contributions are still applicable on unpaid wages and bonuses not redundancy pay.

Wile E. Coyote · 1 Feb 2007 at 18:17

Loki said:
NI Contributions are still applicable on the full ammount

I thought they would get you somehow :rolleyes:

Loki · 1 Feb 2007 at 18:19

Wile E. Coyote said:
I thought they would get you somehow

lol

You are also entitled to one days paid leave (pro-rata) per month for your notice period to attend job interviews

Rotty · 1 Feb 2007 at 18:24

Loki said:
NI Contributions are still applicable on the full ammount

this is not the case

http://www.hmrc.gov.uk/guidance/redundancy-factsheet.pdf

Rotty · 1 Feb 2007 at 18:25

Loki said:
lol

You are also entitled to one days paid leave (pro-rata) per month for your notice period to attend job interviews

don't think this is correct either

you will accrue holiday entitlement during your notice period at the same rate that you normally would

Loki · 1 Feb 2007 at 18:31

I will check that out Rotty as a number of people have been made redundant from my works recently under those conditions. More importantly the latter one given as an entitlement by the Government (allegedly)

Loki · 1 Feb 2007 at 18:33

Rotty said:
this is not the case

http://www.hmrc.gov.uk/guidance/redundancy-factsheet.pdf

Edited and thanks for the link Rotty

kinggost · 1 Feb 2007 at 18:38

I got 2k when the company i work for went bust. I got taxed on some things but not on others. When the company went bust i got a booklet that says what they will pay you and what you get taxed on.

Rotty · 1 Feb 2007 at 18:39

Loki said:
I will check that out Rotty as a number of people have been made redundant from my works recently under those conditions. More importantly the latter one given as an entitlement by the Government (allegedly)

cheers, let me know what you find

nst68 · 1 Feb 2007 at 22:10

Thanks for all the replies.

Just gotta wait till tomorrow to see if I'm one of the ones offered it.
If the amount is good then it would be silly of me to turn it down, but is hard to know what the minimum figure I'd want is.
Lots of thinking to do tonight methinks.