Redundancy splitting payment over 30k

wakefly

Being made redundant, understand everything received over 30k is taxable, is it possible to request the first 30k to be paid in one tax year and the remaining sum in the next tax year?

jdturk

I very much doubt it

roger196

AFAIK chargeable in one sum for year of termination, not when paid.
S.148(4)(b) Taxes Act 1988.

exil

How could an employer be stopped from making a payment of 30k in year 1 and then an ex gratia payment for the rest in year 2? The type of payments we're talking about are payments a worker is not entitled to by virtue of their employment contract and so does not form part of income from employment.

Not sure about this, just asking!

Sunshine12

Very much doubt it. Im not sure but wouldnt this be tax fraud?

SapphireFlames

It sounds a bit dodgy to me!

happywarmgun

People do do it, and people do get away with it. People also drive over 70 on the motorway: You are in trouble if you caught. To artificially construct a scheme of payments to avoid a tax is generally a bad thing from HMRCs perspective!

Get professional advice before you go down that route...

getmore4less

People do get it paid over multiple tax years

you could ask you tax office about it.

There is the risk the company cannot pay the future payments.

Even if you don't get multlpile £30k allowances you should get it taxed at the marginal rate for the tax year it is paid. handy for a high rate taxpayer that wants some time out.

amanda40

It can be done - speak to your union rep. We looked into it when hubby got made redundant , but you also have to look into implications of other benefits ie CTC, we received it all in one go, so we are not longer entitled to CTC for this year - so have to pay it back which is fair enough. It will not be counted from April onwards so CTC will increase, whereas if we received it over two years would have lost that for next year too ( that is if he doesnt get a job)