Redundancy payment and tax

suebfg

OK, so just so that I've got this right in my head, the company can make the payment so that it is equal to net pay but they're not actually deducting for tax - they're just paying a lower amount - tax free - but essentially the same as if he was paying tax.

Interestingly though, they've not included benefits in their calculations - so there's no payment in lieu of company car allowance for example for the notice period. Should they be adding this in?

getmore4less

Since they have not put any contractual terms the compensation should put you a similar position as if you has worked the notice.

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Resigningorretiring/DG_175835

the problem is if you don't like the offer and try to make claim then get another job you could worse off.

THey also have the alternative of putting you on garden leave.

Thinking about it I think they save money by getting you out this tax year.

shundeez

employmentlawwatch.com/tags/tax-on-termination-payments

have a look at this article, explains the benefits of staggering payments.

I'm having a similar concern and seeked advise