My Redundancy Diary

Rossie_Cheeks

Hi Everyone

I just found this thread.

I have taken voluntary redundancy from work and will finish at end of June. My package is years salary plus all my shares tax free and career counsiling for 3 months.

I don't really know what I want to do, but would like to use the opportunity to try different things. Ideally i would like to work part-time 3 days a week and be able to fit in voluntary work and just have more time to enjoy life.

I am a people person, so definately want something that has interaction, I am from IT Industry, but am sick of the corporate environment.

I will also be moving from London to Berkshire and will rent out my house in London that will provide an income. As my mortgage is very low I am a bit worried about the tax I will incur on the rental income as renal will be about 1350 per month and mortgage only about 100.00, so any ideas how I can deal with the tax implication, I don't want to end up paying 40%.

With my redundancy, I am being taxed on £12,000 the rest is tax free.

Thanks

R

MightyMythop

Hi all,

I've been following this thread too and just been accepted for VR.

Like most on here, I'm not 100% sure what I'll be doing but I do like the Financial Services industry that I'm currently in so will probably stick to that. However, conversely, I'm pretty hands on and practical and have done plastering work for people since I did a course about 12 months ago.

Whether it's the right economic time to go full or even part time with that remains to be seen but I feel I could make a go of it if nothing else turned up.

My notice period hasn't actually started yet, should be next week and it's 12 weeks so think that'll take me to mid-July. Excellent timing with Summer holidays etc, I'd love to take time off but if something was offered to me in the meantime I'll not be disappointed to take it!

I'm fortunate that my wife is the "bread winner" and we could, at a stretch, survive on her salary alone whilst I job hunt so the pressure is off. This is assuming we use some of my payout to payoff a couple of debts we have.

I've been working for the same Company since I left school so I'm pretty nervous about interviews etc, the only ones I've ever had were for internal moves and they were pretty low key and straightforward. However, I'm sure people will see the best of me at interview stage and hope my CV is vibrant enough to get noticed.

Like others, I'll keep you all in the picture!!!

Rossie_Cheeks

MightyMythop wrote: »

I'm pretty hands on and practical and have done plastering work for people since I did a course about 12 months ago.

Whether it's the right economic time to go full or even part time with that remains to be seen but I feel I could make a go of it if nothing else turned up.
!!

Mighty, its a shame you are in Blackpool, I need a plasterer.

Good luck with whatever you decide.

I was going to try training as a nail technician but not sure I am practical enough for that, I've done friends manicure, but its more difficult than you think.

Jackonary

Hi Everyone

I have been following this thread with interest and have found it quite comforting. So I thought I would share my experience.

I took VR and left employment last month. I have been extremely busy since then. Certainly no problems about being bored and not knowing how to occupy myself. Initially, I was still in work mode i.e. quite driven and focussd. I'd do stuff like CV writing, networking, meeting contacts for potential work opportunities etc. from 9 to 5 every day. I had occasional panic attacks about the fact that I have no income coming in at the end of every month.

I was then reminded by a friend about why I took VR in the first place, which is to have a better work/life balance. Since then I have calmed down a lot, and the panic attacks have gone. I am clearer about what I can and will do for a living and so the job hunting is more targetted. I would only like to work 2 to 3 days per week and only for a few months of the year only. I have worked out a budget and how much I will need to earn over the next four years before I take my occupational pension.

I am beginning to enjoy not working. I do not miss my old place of work or my ex-colleagues, and I am not depressed on a Sunday evening anymore. Yeah, life is good and I am so pleased that I took VR.

Andyboy

Sorry to start on a negative but just got a letter which starts as follows

"HMRC have changed the way that compensation lump sums MUST be taxed.....From 6 April 2011 HMRC require that tax must be applied in line with appropriate tax bands.

£0-3500 @ 20% Max of £2917 in one month
£35001- 150000 @ 40% Max of £9583 per month
over £150,000 @ 50%"

Basically the first £30K is tax free for all
next £2,917 @ 20%
next £9583 @ 40%
all the rest @ 50%

The individual would have to apply to HMRC to assess the correct amount of tax payable and reclaim any excess tax paid!!

It also contained the sentence now ringing around in my head "This may have a significant impact on your financial decisions" :mad:

Now my positive part, until I find out differently.....I still believe that the use of a P50 stating that I do not intend working in the next 4 weeks SHOULD enable a tax rebate but how much I do not know. I will keep you posted.

STOP READING NOW IF YOU DON'T WANT ANY ADDITIONAL BLURB I HAVE FOUND ON THIS

For those of you who might want more unverified info i also have this

[FONT=&quot]Tax changes to affect redundancy payments after 6th April 2011[/FONT]
Anybody receiving a redundancy payment over £30000 after the end of this tax year will be affected by changes to the way HMRC collect the tax.
A 0T tax code will be applied on the sum in excess of the tax-free £30000. This sum will be deemed to be a monthly payment so will artificially inflate an individuals earnings. It will only take a total redundancy payment of £42500 to bring them into a 50% tax bracket, hence all earnings for the rest of the year may be taxed at the highest rate.
It will be possible to claim a refund but only when you start a new job, choose to take a pension or, if you choose not to go back into employment and will not be claiming any taxable social security benefits, on application. Otherwise adjustments will be made when you lodge your tax return for the year.

(source : http://www.accountingweb.co.uk/anyanswers/paye-redundancy-payments/484598)

[FONT=&quot]Is this the answer?[/FONT]
You can claim a tax refund by filling in form P50 Claiming tax back when you have stopped working. Send this to your Tax Office, together with form P45, Parts 2 and 3 - and keep Part 1A for your own records.
Your Tax Office will send you any tax refund you're entitled to by post. They'll also send you a new form P45, Parts 1A, 2 and 3, if necessary.

....... If you were made redundant contact your Tax Office before filling in form P50 and they will tell you what other information you need to provide.

(Source : http://www.hmrc.gov.uk/incometax/stop-work-refund.htm)

Also useful : Contact your tax office
http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1

I hope I haven't broken any rules for the site as this is good and useful info and I will report back when I have tested it out.

daisyf_2

this is really helpful - I'm just in the start of my 12 week notice and have just been on some business link courses most helpful as i want to set myself up in business, I'm getting quite a few opportunities coming my direction and my manager is telling me that they may be opportunities to come back as a freelancer... lol

I've also got a part time job which can wait until I have finished in 12 weeks time - it feels good to get out and glad this is a positive thread xx

ja4me

I was made redundant from Local Government on 31st March 2011 after 20 years service.
I was also entitled to early retirement as I just turned 55.

Great thread.

At the present time I am waiting until I com back from a well earned holiday before I start looking for jobs etc. I want to work about 3 days a week and I did joke that after working in admin I want a job that will give me a uniform and a decent discount eg Marks & Sparks or Waitrose. Lucky enough I live quite close to the Olympic Stadium and lots of stores are going to open - I have already registered.


Money.

I have to decide where to put my money - not very good with financial matters - so will be looking for advice.

My small pension will be about £500 per month therefore I don't think I will be entitled to JSA.

Andyboy

ja4me wrote: »

I was made redundant from Local Government on 31st March 2011 after 20 years service.
I was also entitled to early retirement as I just turned 55.

Great thread.

At the present time I am waiting until I com back from a well earned holiday before I start looking for jobs etc. I want to work about 3 days a week and I did joke that after working in admin I want a job that will give me a uniform and a decent discount eg Marks & Sparks or Waitrose. Lucky enough I live quite close to the Olympic Stadium and lots of stores are going to open - I have already registered.


Money.

I have to decide where to put my money - not very good with financial matters - so will be looking for advice.

My small pension will be about £500 per month therefore I don't think I will be entitled to JSA.

A well earned break is very important as life changes now you are back in control somewhat. With your partial retirement and plans to work part time i am sure you will make ends meet. i did laugh at the discount comments but you do have a good point.

I am struggling to get excited about any new pensions as i think the earning potential in the southwest is low and starting an over 40s pension pot would eat quite significantly into any income. I will,, however continue to save as it is in the blood.

i have made the appointment with the Mortgage company and am now trying to figure out what fees can be reduced (early exit fee vs continuing to pay mortagage for couple of years left of redemption charges!)i am not expecting them to give me all the answers as they are there to make money but i will keep you posted of the outcome.

Don't be afraid to speak with somebody at Citizens Advice or alike. They might just hold the answers you need.

Good luck.

jess444_2

Hi,

Realy glad I found this thread.

I was made redundant last week. Really enjoyed my job and was very sorry to have to leave. However, I am determined to see it as a positive change in my life.

After some intitial moments of panic during my 90 days notice, when I applied for some jobs I really didn't want (and luckily didn't get) I have made the decision to only apply for part time work and improve my work / life balance.

I received 14 weeks pay, which I think I can make stretch to last me about 28 weeks if I am really careful. Luckily, thanks to MSE I have managed to pay off my debts and the mortgage is almost paid.:T

Good luck everyone,

Jess

CandyB101_2

Gosh I wish we'd had some redundancy notice. OH went into work on Friday and was told there and then that 3 had to go ..... hence back home an hour and half later! Wouldnt be too bad but he's only been there a month and half .... and left a perfectly good job for it too :mad: