Redundancy pay out and student loan payments

linzipinzi

Hi, I am after a bit of advice please. I have just been made redundant for the first time and have no idea of the process etc. I have been told what my final payout will be and what it is made up off- I am waiting for it in writing as if I am honest I was not taking what they were saying in due to shock etc. They have told me it is all tax and NI free but the one thing they did not mention and that is playing on my mind is my student loan payments. When I have a bonus paid into my monthly salary I know the student loan company take a bigger chunk of my wage. I assume my redundancy pay out will be paid all in one chunk and classed as my monthly wage in the eyes of the tax man and student loan company?

Any help and advice would be gratefully received.
Thanks

Pont

As far as I'm aware if your redundancy payment is less than £30,000 it is not subject to any of your usual deductions (tax, NICs and SL repayments) as it is not identified as salary. If it's more than £30,000 I believe the usual deductions apply on the sums above £30,000 (if you received £40,000 tax/NICs/SL would be deducted on £10,000).

TREVORCOLMAN

Pont wrote: »

As far as I'm aware if your redundancy payment is less than £30,000 it is not subject to any of your usual deductions (tax, NICs and SL repayments) as it is not identified as salary. If it's more than £30,000 I believe the usual deductions apply on the sums above £30,000 (if you received £40,000 tax/NICs/SL would be deducted on £10,000).

Plus any amount over the 30k will be taxed as if it is monthly salary - then YOU have to claim the tax back which can take months.

getmore4less

TREVORCOLMAN wrote: »

Plus any amount over the 30k will be taxed as if it is monthly salary - then YOU have to claim the tax back which can take months.

or not if you use a P50