Made redundant last Friday!

Jadzia65

Hello, I was made redundant out of the blue last friday. They said they were giving me notice that they are making my post redundant from 31st December, that I won't have to work the notice period so will effectively be paid for all of Nov (left on 20th) and all of Dec. Then they would pay me statutory redundancy which is 3 weeks salary and a severence of £1,500. Does anyone know whether I pay tax on all or some of this amount and at what point can I sign on. Sorry if these are really basic problems but I have never been in this position before. Advice anyone?

diable

They are paying you in lieu of notice and your redundancy should be tax free. Go to the job center tomorrow and sign on.

OnlyForwards

Hi Jadzia

Sorry to hear you've been made redundant, I sympathise greatly. I've been made redundant four times (at the last count) and every time the process has been different. The last time it happened, which was two years ago, I was able to sign on immediately but I don't think I received any money until my notice period was over.
If memory serves any severance you receive is taxable but you should get some of that back when the inland revenue assess your contribution at the end of the year. I don't believe the redundancy payment is taxable though.

As for other advice I would suggest that you start the ball rolling regarding job applications immediately. My last redundancy was from the construction industry where I worked as a Project Co-ordinator. As this was when the housing market bombed my chances of getting a job in the same industry were slim indeed. I did SWOT, skills and experience analyses and decided on a number of different avenues to take and tailored my CV's to suit. I sent out hundreds of applications (mainly via the web) and got a new job on a higher salary than before in under two months. One month of which was on notice.

All you need to do is stay confident, stay focussed and broaden your horizons. Look upon it as an opportunity rather than a setback.

I hope that helps.

getmore4less

Jadzia65 wrote: »

Hello, I was made redundant out of the blue last friday. They said they were giving me notice that they are making my post redundant from 31st December, that I won't have to work the notice period so will effectively be paid for all of Nov (left on 20th) and all of Dec. Then they would pay me statutory redundancy which is 3 weeks salary and a severence of £1,500. Does anyone know whether I pay tax on all or some of this amount and at what point can I sign on. Sorry if these are really basic problems but I have never been in this position before. Advice anyone?

If they are paying you as normal and not terminated you then you are on garden leave so you cannot claim till they actaly terminate your contract.

Technicaly you may also need permission to start another job allthough it is worth looking immediately.

It might be worth asking for PILON and the redunancy pay now so you can claim(no longer have to delay with PILON) but they don't have to offer this to you.

TAx free on he 1500 and hte Statutory redundancy but normal pay will be taxedNI as normal.

Don't forget to clarify the holidays situation they should pay all outstanding holiday but can ask you to take this during the notice period.

Jadzia65

Thanks everyone for your advice. Am feeling a bit numb at the moment. I don't have anything in writing yet, I'm expecting a letter and maybe a cheque in the post today. can I sign on before the end of the garden leave and what proof do I need to show them? (I'm assuming the letter that I'm waiting for). At what point should I inform Tax credits, we don't get working tax credit just the child tax credit element. My husband is working full time, his salary will just about cover the outgoings but will leave us nothing for food etc. I am quite pragmatic, I know that this is a common situation to be in in the current economic climate, I don't think I'm a special case, it's just so new to me and this forum is comforting as it makes me feel I'm not alone and I appreciate advice from people who have "been here".

Gordon_Hose

You can't sign on during garden leave as you're technically still employed.

getmore4less

Jadzia65 wrote: »

Thanks everyone for your advice. Am feeling a bit numb at the moment. I don't have anything in writing yet, I'm expecting a letter and maybe a cheque in the post today. can I sign on before the end of the garden leave and what proof do I need to show them? (I'm assuming the letter that I'm waiting for). At what point should I inform Tax credits, we don't get working tax credit just the child tax credit element. My husband is working full time, his salary will just about cover the outgoings but will leave us nothing for food etc. I am quite pragmatic, I know that this is a common situation to be in in the current economic climate, I don't think I'm a special case, it's just so new to me and this forum is comforting as it makes me feel I'm not alone and I appreciate advice from people who have "been here".

You need a complete change of thinking to tackle this.

Do a SOA and make a plan think as if you are deep in debt.
http://www.makesenseofcards.co.uk/soacalc.html

Food is a priority first on the list not the last on the list.

Food,rent/mortgage/council tax the rest are lower down

Look at all discretionary spends, sky/cable,mobile,cars cut back everything you don't need, wants are a thing of hte past till there is new income.

Check what they plan to do re: PILON, garden leave and redundancy payments. If they let you go imedieately then you can sign on but so the leg work anyway and get the forms and info so if you have to wait you can be prepared.

No idea on benifits etc. but phone and ask what you need to do also try the benifits board where they know more about these things.

Jadzia65

Hello again.

I have been looking on the Benefits forum but have quickly scurried back here as a lot of posters aren't very friendly.

I am seeking advice not judgement.

As I said in my OP, Made redundant last Fri, paid up until end Dec then will get a small severence package. The job I was made redundant from was a full time position, however I have been trying to set up my own business in my own time and as such I am registered part time self employed (there is no real income from this, se up costs so far outweigh income).

I am trying to be positive and see my current situation as an opportunity to allow me to build up my business. Therefore in an ideal world I will be seeking part-time employment in order to make ends meet. If I claim CB JSA after my notice period will I be exempt as I only want to look for a part time job. Can I be forced to apply for anything for the sake of it?

I am not trying to get out of job seeking whilst claiming CB JSA, but from the other forum it seems that I would be made to aplly for any job irrespective of my career choice. Bit I'm sure I read somewhere that there is a short time where you can claim be allowed a short breathing space.

Sorry such a long post.

Constructive advice please!:)

OnlyForwards

Going on my last experience (and they may have changed the system since then) you will not be made to apply for 'any' job for the first few months of being on JSA. You can therefore be selective about applying in the industry/role you were in before. After six months they will expect you to apply for anything they recommend. You do however have to demonstrate that you are actively seeking employment during those first few months.

I'm not sure how that sits alongside setting up your own business though. You may not be able to submit expenses into your new business accounts which show dates that coincide with a period for which you were claiming JSA (if that makes sense). I would be interested to hear if anyone knows anything to the contrary.

Jadzia65

Thanks for that OnlyForwards,

On other forums it appears that some want to kick you when you're down.

I am worried that as my cv will show that I am a skilled office worker that I will be forced back into an environment that I'm trying so hard to escape from. I need the breathing space to re-assess my life at the moment I will apply for only part time work (but am not too fussy as long as it's not office based) so that I can give myself the time to build up my business. I would rather not claim any JSA than be forced into the wrong thing at my time of life (45).

But I need my Nat Ins contributions to be kept up. Am currently exempt from class 2 contibutions as business not going to make £5,200 this financial year.

Advice greatly appreciated, I suppose the best thing to do would be to go to CAB.

OnlyForwards

No problem.

I hope somebody else can confirm that what I have said is correct.

The CAB will probably be a great help but the Jobcentre is usually quite helpful too.

As for the contents of your CV I have been told that most employers are moving away from a traditional list of education & past Jobs etc and are more interested in seeing examples of transferable skills and experience. They do want to see the other stuff but it's not as important as the latter and should therefore occupy less space on your CV. There are probably other schools of thought on this and again I would be interested to hear another point of view.

BTW did nobody tell you that your 40's are the new 30's!! Apparently life begins at 60 these days.