Redundancy - Voluntary Severance Advice

WeaponX

Hi,

I have taken voluntary severance from work and I need some advice.

1. In the voluntary severance package the notice period payment and the performance related pay is taxed. As the voluntary severance package is under £30,000, shouldn't the whole package be tax free?

2. Do I need to sign on at the Job centre? This is the first time i've been out of work so i'm unclear what I need to do. I understand that you do not qualify for the JSA if you have savings of over £16,000.

3. I haven't set up a pension plan yet so now i have some time on my hands I can look into this. I'm quite skeptical for saving money in a long term financial vehicle with all the palava with pensions of the years. I do have a Cash ISA that I've been putting money in year after year though. Can anyone recommend a pension or where to get the best advice from to set one up?

4. Which brings me onto my next point, at work Lighthouse Temple Financial Advisers have been touted for anyone needing financial advice. Is it worth talking/paying to an independent financial advisors about a pension?

I plan to do the CCNA and Prince2 training courses before I head back into the working world.

Many thanks for your comments.

Moli_2

Hi,

I am not able to answer your questions as I myself am in a situation where my ex-employer has not come back to me with my P45 and P60 forms after 3months. I have text, email and called, yet I am still not receiving it through post. I am unsure what I can do either.

Anyway, what struck my attention is Prince 2. It is a course that I am proactively looking into. I have not done my reading up and research. Maybe you can share with me which website are you planning to enrol to? I notice different website has different price..

getmore4less

Anything that renumeration related is taxed.

Pay, holiday and performance bonus,

Only the redundancy will be tax free, this should have been clear in the numbers given to you for you assess you desire to take VR.

Contributions JSA can be claimed imediately.

If they are recommending an IFA ask for them to pay as part of the severence, support to help people with CVs etc is considered good practice.

As for support with training costs to help with your career.


Pension is just a tax deferment wrapper with conditions.