Redundant, few pointers required!

bazzab

OK, i'm redundant as of today :rolleyes: Have redundancy, PILON, months wages etc being paid into bank next Friday.

Having not been in this situation since leaving school, can anyone give me some pointers and advice as to my first steps to take? I've heard i should sign on at jobcentre in order to make sure my NI contributions are up to date?

Thanks

firesidemaid

i don't know what you do/did, but apply for as many jobs as possible of any type. if you can earn anything at all it will reduce the amount of your savings/redundancy etc that you will spend/eat into and you do not know how long it will take to get another job.

some jobs have other bonuses eg. work in a supermarket and you might get cheap/free food, discounts etc. work in a cafe/restaurant and again there may be free food - every little helps.

i have not been in your situation, but have read a lot on here recently and as you say 'sign on' as such asap to get your NI contributions paid and find out what else you might be entitled to depending on your circumstances.

bazzab

Thanks!

Can someone with a bit of knowledge of tax etc give me a rough idea of how much i'll come out with after tax and NI on my PILON figure?

PILON = £3,901 gross

Owe back = -£240 gross (roughly 3.5 days holiday taken over acrued amount)

Would like a pointer as to how much i'd expect in actual terms? I was guessing around £2,800 but hoping for more obviously!

Thanks guys and girls!

bazzab

bazzab wrote: »

Thanks!

Can someone with a bit of knowledge of tax etc give me a rough idea of how much i'll come out with after tax and NI on my PILON figure?

PILON = £3,901 gross

Owe back = -£240 gross (roughly 3.5 days holiday taken over acrued amount)

Would like a pointer as to how much i'd expect in actual terms? I was guessing around £2,800 but hoping for more obviously!

Thanks guys and girls!

Anyone?

Got2change

bazzab wrote: »

Anyone?

It is quite hard to do without knowing your earnings to date for the year and I'm not sure if you want to post all your income details on here.....

AFAIK your redundancy payment should be tax free but your regular month's pay and pay in lieu will be subject to tax through the PAYE system.

You are thinking that your pay in lieu etc. will be 3901 less the 240 you "owe" re. holidays, so your pay (not inc redundancy) will be £3661.
You need to add this to the last figure of total pay to date from your last payslip.
You need to also know the week number of your final pay and also your tax code - 603L?

If you want to post those, I - or others I'm sure - can calculate what you will be paid nett.

bazzab

Hi, Tax code is 603L, next wage will be around £1,500 gross and not sure what you mean by week number of final pay, but it's next friday?

Thanks

Got2change

bazzab wrote: »

Hi, Tax code is 603L, next wage will be around £1,500 gross and not sure what you mean by week number of final pay, but it's next friday?

Thanks

The week number - or month number will be on your payslip (I usually would know this kind of thing but see signature.... Anyway, we will be at about week number 34 or 35 of the tax year - or probably Month 8 but I don't want to work it out wrongly); and again, to work out what you will be paid net, I need to know how much you have earnt so far in this tax year - again, this will be given as a figure on your last payslip - as Total Pay to Date.....

But to roughly calculate, I would deduct about 24% from your gross pay for what you will receive net so about a quarter of £3600 will go in tax and NI.
I can work it out more accurately with the figure of total pay to date...

By the way, sorry to hear your c****y news.

bazzab

Got2change wrote: »

The week number - or month number will be on your payslip (I usually would know this kind of thing but see signature.... Anyway, we will be at about week number 34 or 35 of the tax year - or probably Month 8 but I don't want to work it out wrongly); and again, to work out what you will be paid net, I need to know how much you have earnt so far in this tax year - again, this will be given as a figure on your last payslip - as Total Pay to Date.....

But to roughly calculate, I would deduct about 24% from your gross pay for what you will receive net so about a quarter of £3600 will go in tax and NI.
I can work it out more accurately with the figure of total pay to date...

By the way, sorry to hear your c****y news.

Thanks for your help, don't want an exact figure, just a ball park figure. So my initial guesstimate of £2,800 was around about right. So around £2,700 PILON + £6,000 total redundancy + £1,150 wages = £9,850 in total. That will do for me until i actually find out next week.

Thanks again for your responses!

dharm999

Have you asked your employer if your PILON can be paid gross of tax? Its worth asking seeing as at the moment every little will help. As I understand it, deciding if PILON being paid net of tax or gross, is not a clear cut area, and your employer may be able to investigate for you (and others i guess in your situation at work) and save you all some tax. Factors that need to be considered are; is PILON included in your contract, does your company pay PILON as a matter of course or rarely? All these things will help decide if it is to be paid gross or net.

bazzab

dharm999 wrote: »

Have you asked your employer if your PILON can be paid gross of tax? Its worth asking seeing as at the moment every little will help. As I understand it, deciding if PILON being paid net of tax or gross, is not a clear cut area, and your employer may be able to investigate for you (and others i guess in your situation at work) and save you all some tax. Factors that need to be considered are; is PILON included in your contract, does your company pay PILON as a matter of course or rarely? All these things will help decide if it is to be paid gross or net.

They've made it pretty clear through the whole process that PILON is subject to tax.