Probably A Very Stupid Question

tesuhoha

but I know nothing about redundancy payments. At work we have been asked to volunteer for redundancy. I am thinking about it as it will trigger my pension as well. However, I am trying to figure out how much I will actually get and I have no idea whether this will be taxed or not. I am on £16276 pa at present and my redundancy pay works out at £6573. I am assuming that redundancy payments are taxed like everything but can someone just confirm please.

Many thanks.

JournalGirl

redundancy payments are often paid without tax, but you need to find out from your company if this is their intention

tesuhoha

Thanks - that would be really good if it was the case but can find nothing in all the paperwork. Will ask at work.

getmore4less

Whats the breakdown of the payents show?
If it is all redundancy then tax free up to £30k

Any pay for time owing holidays or payment for notice will most likely all be taxable

How long have you worked there?
Notice is 1 week per year upto 12weeks or longer if contractual.
redundancy is 1week per year up to 20 (capped at 380)

How many full years were you employed over the age of 41?
you get an extra 1/2 week for each of those.

tesuhoha

I have a table which takes into account my age and I will get 21 weeks x my weekly wage which is around £313 gross.

McKneff

Isnt there something about Pilon being that if its not in your contract then it has to be classed as compensation, therefore not taxed.

anamenottaken

McKneff wrote: »

Isnt there something about Pilon being that if its not in your contract then it has to be classed as compensation, therefore not taxed.

PILON is not a payment for redundancy. There may be no "in lieu": notice may be worked in full.

Though PILON may not be in the written particulars it may still be contractual if it is what the company normally does.