Redundacy 40 months to work

GibbsRule_No3

I know I can get the first £30,000 of my redundancy tax free but if I do not work for the next 40 months, when I will be 60 and eligible for my works and deferred pension can I claim back tax on the redundancy that is over the first £30,000? If so how does it work? I would receive the redundancy in the present tax year, so 2011, 2012, 2013 and part of 2014 would be not worked in. Other than the JSA for the first 6 months, as a single person I don't think I would be entitled to any other benefits. So income would just be from the interest on the sum invested. Depending on the tax taken over the next 40 months, if my calculation is correct, without paying tax my redundancy would be about equal to my take home pay per month now. With tax it would not work. unless a claim back is an option.

hcb42

I dont think you can claim this back in future years, it would be deducted at source at time of payment I believe (well it was for me, although it was ten years ago now)

getmore4less

Can't claim back the tax. no NI though.

Get it paid after April so in a new tax year.

You can pension it so if it takes you into 40% that might be worth looking at.

GibbsRule_No3

I did query if it could be paid for the next tax year, as we are being PILON and that would take it into next year but they said no. They obviously want to write it off from this years account for them. Probably settles the option of not requesting to take it and if they enforce it sobeit. Think I'd want to work anyway but knowing I did not have to unless it was something I really wanted to do would have been icing on the cake.