Redundancy - and new job

senwar

Hope people can take heart from this - but there are jobs out there. I was accepted for voluntary redundancy in December.

I was offered yesterday (and accepted this morning) a job in a similar vein to the one I do now. Same industry, same salary and for a 6 month fixed term. I've not even left my old job yet too! Finish on the Friday, start new one on the Monday!

So I'm relatively happy as you may guess. Anyway, just have a question.

Given I'll be getting my redundancy pay, plus 3 months PiLON, am I likely to be clobbered for tax on my PiLON (ignoring the first 30k) and then my subsequent salary going forward - I am in the 40% bracket you see. Just wondered what will happen and will I be put on a different tax rate for the rest of 09/10?

getmore4less

Redundancy should be tax free up to £30k, rest is taxable at your normal rate.

PILON may be taxable and NI, if allowd for in the employment contract and may be even if not.

Unless yo can get some of the payments defered an tax liability will be asesed for this tax year.

You could consider a pension contribution


If they pay you your redunancy/PILON and include it on your p45 then it should sort itself out, if not you will probably need to do a tax return.

Tax clock starts ticking again in April.