Pay less tax on Redundancy??

shundeez

Hi,

I hope some one could point me in the right direction.

I've taken voluntary redundancy and I have an option to take it before April 5 or after. My question is what rate of tax would I pay my p45 was dated before 5th April but the severance pay would be after, i.e. in the new tax year.

I'm aware the 1st £30k will be tax free, but if I get my p45 before April the 5th and ask my employer to pay the severance after will this provide me with a 20% rate instead of the 40%.

I've managed to secure myself another job abroad after the 5th so will not be earning any money in the UK in the new tax year. So I assume that if i get my final monthly salary with my p45 before the 5th, then that will get taxed as per usual at 40%. But if I get the severance paid out after the 5th then any amount paid will be subject to 20% as this amount will fall in the lower tax bracket of money earned in 2012 and I will not be earning any additional income in 2012 in th UK.

Am I correct in assuming this?

Any advise would be appreciated.

Thanks