Redundancy Tax Free Sum And Re Employment

I'm an employment lawyer. If this is public sector then there may well have been a clause in your settlement agreement about returning to public sector employment/employment with a particular type of public sector body. Most have a six month restriction. You have passed the usual 4 week period during which the payment has to be returned.

In any event there IS a risk here whether it private or public sector since HMRC may well decide there was something fishy behind it and it was an attempt to give you a tax advantage. You would need to be able to demonstrate that this really was a payment for termination of employment.

I suspect the employer will be none too happy about you applying once they've given you a large redundancy payment.