Tax and NI on enhanced element of redundancy pay?

sagalout1954

Statutory redundancy is tax/NI free but I've been told that I have to pay tax/NI on the enhanced element of my redundancy money (which doubles what would have beenthe statutory payment).

Anyone know if this is correct? Not ALL my redundancy tax/NI free then? Can't find the right section on the Directgov site to clarify this and nothing in my T&C's.

fengirl_2

What do you mean by enhanced redundancy? Only redundancy pay over £30000 and/or provided for in a contract is taxable.

Uncertain

fengirl is correct that the first £30K is tax free.

The only exception would be if any of this money is a contractual entitlement. For example, if your contract said "if we give you notice for any reason we will give you £10K" then this part is not a redundancy payment and is normally taxable.

getmore4less

http://www.hmrc.gov.uk/guidance/redundancy-factsheet.pdf


http://www.hmrc.gov.uk/employers/redundancy-er.htm


whats the offer on the table?

sagalout1954

Queried their "only Statutory Redundancy amount is tax/NI free" comment and sent them the link to the Directgov 30k tax/NI free page. Lo and behold got a "sorry we gave you the wrong info". Blimey, at a time when you are perhaps the most stressed, you don't half have to keep your finger on the pulse of what an employer is doing!

Getmore4less - I get 3 weeks money for every year I've been there (to a max of 12 years). It doubles what I'd get if only entitled to the Stat. rate.