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voluntary redundancy
bem_2
Posts: 1 Newbie
in Cutting tax
I have just accepted voluntary redundancy My employer agreed to pay me two months pay after I accepted voluntary redundancy. I have been employed there for three years. However he included the redundancy payment with my final monthly wage and showed it as an ex-gratia payment on my payslip. I have been heavily taxed and I thought that my redundancy payment would be tax free. Can anyone advise?
0
Comments
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Redundancy pay up to £30k should be tax free.
Pay in lieu of notice is not.0 -
As already advised, your redundancy pay should not have been subjected to tax and national insurance, unless it exceeded £30k.
Pay in Lieu of Notice is not however taxable in every circumstance. If he right conditions are met the PILON is tretaed the same way as redundancy (so long as PILON and Redundancy dont exceed £30k in total the PILON wouldnt be taxable).
I suggest you go back to your former employer and have them re-run your payslip with the redundancy not being subjected to tax and nat ins.0
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