redundancy payment-what to say to inland revenue?

someonehadmyusername

i am being made redundant at end october. i will recieve 2mths pay and as i dont have to work my notice-1 months taxable pay

all in all around £3,500

what do i tell inland revene?
will they calculate my tax credits on this cause its obviously a one off. im hoping to have 2 weeks off to get sorted and find new job by 20th nov

will i be albe to claim any benefits in this time?

i will struggle a bit as all of the redundancy (and i mean all!) is being spent straightaway (get it end nov) on debt-loan/overdraft/catalogues etc so i will be better off each month

but what do i do ?

please give any advise you can-im so clueless with what i need to do now
x

someonehadmyusername

i know i will have to be honest!
i mean how do i explain it is only a one off so i dont end up with no tax credits next tax year

so i can claim jobseekers if i am avavilable 3 days after i finish current job? the time off was to spend looking for work (and attending interviews etc and was hoping to start new job by 20th nov) and getting my house in order (which needs tlc)

could i also claime housing benefit and council tax until i found work?
x

zoezoe_3

someonehadmyusername wrote:

i know i will have to be honest!
i mean how do i explain it is only a one off so i dont end up with no tax credits next tax year

so i can claim jobseekers if i am avavilable 3 days after i finish current job? the time off was to spend looking for work (and attending interviews etc and was hoping to start new job by 20th nov) and getting my house in order (which needs tlc)

could i also claime housing benefit and council tax until i found work?
x

You just tell them at the end of this tax year when they ask what your final income was. There might be a slight overpayment but there shouldn't be as there is a 25k disregard. And then next year make sure they base your credits on your actual epxected income for that year.

real1314

capital limit for JSA (income based) and HB and CTB is £6000.00, so ok there.
Most redundancy payments are tax free up to £30,000.
Tax Credit disregard is £25,000 incr, so ok there.

lost_soul_6

Was made redundant at the end of July and claimed JSA have a couple of weeks off as long as you sign on straight away. I had to apply for 4 jobs a fortnight to keep claiming the JSA I now start my new job in 2 weeks with no help from the local job centre.