Tax Free Portion Of Redundancy Pay - Needs Updating?
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artha
Posts: 5,254 Forumite
Can anyone comment on how long the 30K ceiling on tax free redundancy pay has been in force. I've got a feeling it is a long time and isn't it about time the Goverment increased this to take account of inflation etc especially with the number of people lilely to be made redundant in this recession?
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You are right in thinking it has remained at £30,000 for years now - its been that level for as long as I've been aware of it (wouldnt be at all surprised if thats over 10 years). Its certainly well overdue for uprating in line with inflation as you say. I guess someone will come along soon who knows how long it has been set at this level - but the question is whether its possible to do anything about it.
The Government has a tendency to cut things by dint of not giving appropriate inflation rises in a variety of things - not just this one. As I recall - the amount of capital one was allowed to have whilst on benefit stayed at only £3,000 for years for instance and is still not equivalent to what it used to be (even though they have raised it to £6,000 now). It was £3,000 over 20 years ago - which I would guesstimate means it should be at least £15,000 now to have kept pace with inflation.0 -
According to an old book I have it was £25,000 back in 1982. I am not sure when it went to £30,000.0
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Sounds then like it's long overdue for an update. I would guess goverments only consider this during periods of recession/high unemployement to catch votes. How to raise the issue? Write to my MP?According to an old book I have it was £25,000 back in 1982. I am not sure when it went to £30,000.Awaiting a new sig0 -
It was £30,000 when I was made redundant ten years ago. I don't think there's a snowball's chance in hell of the government increasing it though. When you think of how much income tax they will be losing from every employee who is made redundant and no longer earning and how much extra they will be paying out in Job Seekers allowances, I don't think they'll be increasing the redundancy tax free allowance. It's certainly long overdue for an update, but then the Equitable Life pensioners are still waiting for their compensation too........0
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