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voluntary redundancy? taxed????
sharquois
Posts: 4 Newbie
Hi -
My firm is reducing headcount and making redundancies - we've been told that if we apply for voluntary redundancy we may be taxed on it, as we are "making ourselves redundant". This doesn't seem right to me? Surely if that was the case, then no one would ever take voluntary redundancy! If they are making the redundancies anyway, surely you shouldn't be punitatively taxed for jumping rather than being pushed? Does anyone know?
My firm is reducing headcount and making redundancies - we've been told that if we apply for voluntary redundancy we may be taxed on it, as we are "making ourselves redundant". This doesn't seem right to me? Surely if that was the case, then no one would ever take voluntary redundancy! If they are making the redundancies anyway, surely you shouldn't be punitatively taxed for jumping rather than being pushed? Does anyone know?
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Comments
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They are talking rubbish, redundancy payments are not taxable.make the most of it, we are only here for the weekend.
and we will never, ever return.0 -
anniehanlon wrote: »They are talking rubbish, redundancy payments are not taxable.
I thought it sounded a bit iffy!0 -
ps - thanks!
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Your welcomemake the most of it, we are only here for the weekend.
and we will never, ever return.0 -
redundancy payments up to 30k are tax free, but anything paid over this amount is taxable.3 stone down, 3 more to go0
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That is cobblers! Sounds like some low life is just trying to scare people off from applying ... or they have far less knowledge than they should.Favours are returned ... Trust is earned
Reality is an illusion ... don't knock it
There's a fine line between faith and arrogance ... Heaven only knows where the line is
Being like everyone else when it's right, is as important as being different when it's right
The interpretation you're most likely to believe, is the one you most want to believe0 -
Why would the employer want to dissuade staff from taking voluntary redundancy, given that they want to reduce headcount?"You were only supposed to blow the bl**dy doors off!!"0
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They might be scared of getting a flood of applications ... and all the embarassment and even lower morale that usually results in? But you are probably right, much more likely the employer is just badly informed and giving very poor advice.maninthestreet wrote: »Why would the employer want to dissuade staff from taking voluntary redundancy, given that they want to reduce headcount?Favours are returned ... Trust is earned
Reality is an illusion ... don't knock it
There's a fine line between faith and arrogance ... Heaven only knows where the line is
Being like everyone else when it's right, is as important as being different when it's right
The interpretation you're most likely to believe, is the one you most want to believe0 -
noelphobic wrote: »redundancy payments up to 30k are tax free, but anything paid over this amount is taxable.
that is correctI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
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