We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Redundancy and tax-free allowance
Beanigan
Posts: 1 Newbie
Hi,
I hope someone can help me. I'm being made redundant with a termination date of 1st April 2011. However they are not paying me my redundancy payout until 25th April 2011.
I've already signed the compromise agreement as was only given 7 days to do so (with a solicitor) who never mentioned the tax implications.
My brother informed me today that since they are paying me in the tax year April 2011-April 2012 then I now won't qualify for my tax-free allowance for that year and will be full taxed on all earnings no matter how little they are (My payout is around £10K and I was planning a low paid temping job to tide me over). Had they paid me in this tax year then potentially all earnings for the next few months would be tax free. I'm going back to university in October 2011 so I was hoping that all earnings before then could potentially be tax free.
I figure it's too late now having signed the compromise agreement - but is this true?
I hope someone can help me. I'm being made redundant with a termination date of 1st April 2011. However they are not paying me my redundancy payout until 25th April 2011.
I've already signed the compromise agreement as was only given 7 days to do so (with a solicitor) who never mentioned the tax implications.
My brother informed me today that since they are paying me in the tax year April 2011-April 2012 then I now won't qualify for my tax-free allowance for that year and will be full taxed on all earnings no matter how little they are (My payout is around £10K and I was planning a low paid temping job to tide me over). Had they paid me in this tax year then potentially all earnings for the next few months would be tax free. I'm going back to university in October 2011 so I was hoping that all earnings before then could potentially be tax free.
I figure it's too late now having signed the compromise agreement - but is this true?
0
Comments
-
Hi,
I hope someone can help me. I'm being made redundant with a termination date of 1st April 2011. However they are not paying me my redundancy payout until 25th April 2011.
I've already signed the compromise agreement as was only given 7 days to do so (with a solicitor) who never mentioned the tax implications.
My brother informed me today that since they are paying me in the tax year April 2011-April 2012 then I now won't qualify for my tax-free allowance for that year and will be full taxed on all earnings no matter how little they are (My payout is around £10K and I was planning a low paid temping job to tide me over). Had they paid me in this tax year then potentially all earnings for the next few months would be tax free. I'm going back to university in October 2011 so I was hoping that all earnings before then could potentially be tax free.
I figure it's too late now having signed the compromise agreement - but is this true?
Redundancy payments up to £30,000 are tax free anyway so this shouldn't affect your future plans.Forums can be/are a good guide to entitlement and it is good practice to back it up with clarification from the relevant department/specialist with written confirmation to safeguard yourself.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards