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Deductions from Redundancy Payments
HolidayGirl
Posts: 16 Forumite
Hi there, My husband has accepted a VR package from his firm. His gross payment is in the region of £50K, we know the first £30K is tax free and the remaining £20K taxable but can someone tell me if he will also have NI and pension contributions deducted from the £20K?
Cheers
Cheers
Holiday Girl;)
0
Comments
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You will likely have NI deductions but it will depend on the contract regarding pension deductions.0
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No NI on redunancy payments only TAX at the marginal rate over the £30k.
http://www.hmrc.gov.uk/individuals/redundancy-ee.htm
Pension should not be deducted from redundancy but it may be benificial to add to the pension to get the tax releif.
If some of the payment is not redunadncy but for example PILON then that is treated differently.0 -
Many thanks for your responses, the fewer deductions the better!!
:jHoliday Girl;)0
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