Opportunity of Voluntary Redundancy

Judo_Col

Hi there

Used this forum before and always found it useful.

I've been working for my current employer (a very large IT firm) for 14 years, they are going through workforce reduction at this time and I am tempted to take it. The writing is on the wall in my firm and I would rather leave now when it is easier to find employment.

My income is as follows:-

I earn approximately £26000, take home being about £1600 a month.

I have a rental property that gives me £200 a month income.

I have a Monday-Thursday lodger that pays mean between £200-£300 a month depending on how long he is there for.

My outgoings are as follows:-

I have regular access to my child, I pay child maintenance £200.

I have a car loan of £200 which £11000 is outstanding, this is being paid for by the income of my rental property.

I have approximately £8000 on 0% on a credit card for building work that I had carried out recently on both properties that I am paying back £250 a month.

The redundancy package is approximately £23000, so you can see, this would be a great opportunity for me to get myself even again and start over.

If I clear all my debts, the rental property would pay for my Child Maintenance, the essential utility bills on my residential property are approximately £800 a month so I would not need a fabulous job to get by.

Just wondered what peoples opinions were...

Should I stay or should I go?

mgdavid

go, take the money
work on your CV
get a better (paid) job
:-)
(I've been in IT 40 years, total 3 redundancy deals, all good; sometimes it's the spur you need to improve yourself).

getmore4less

14 years in IT on £26k, seems very low, what line.

Run a cheaper car, what was that a 5 year loan for a car, crazy.

whats the long term look like at this place, remember last out usualy get statutory.

Take the money and look for better jobs not just ones that pay the bills .

JSA will be an issue you have income so I think you won't get anything.

Judo_Col

getmore4less wrote: »

14 years in IT on £26k, seems very low, what line.

Run a cheaper car, what was that a 5 year loan for a car, crazy.

whats the long term look like at this place, remember last out usualy get statutory.

Take the money and look for better jobs not just ones that pay the bills .

JSA will be an issue you have income so I think you won't get anything.

I totally agree about the pay, I suppose I was just comfortable really, the firm had not given out any pay rises for the last 4 years. I've worked in a number of roles, but working in software testing at the moment. There does not appear to be any long term future unless I wish to relocate and that is not an option for me.

Being a part time single parent it also helped me that way but now as my child starts mainstream school I do not need to be as flexible.

The only reason I had the car was because the rental income was paying for it.

getmore4less

Judo_Col wrote: »

The only reason I had the car was because the rental income was paying for it.

Not that sensible financialy.

What about reducing debt that increases future income or reduces the need to earn income.

How big and what rate are the mortgages?
Whats the gross yield on the rental?


QA can be quite lucrative if you find places that take it seriously and make it a career.

Judo_Col

getmore4less wrote: »

Not that sensible financialy.

What about reducing debt that increases future income or reduces the need to earn income.

How big and what rate are the mortgages?
Whats the gross yield on the rental?


QA can be quite lucrative if you find places that take it seriously and make it a career.

Well I plan to pay off the car loan immediately.

The rental mortage is £390 a month, the rent I receive is £600, so an income of about £210. I have offset improvements to it etc so there will not be any tax liability for a few years at least.

I can't remember the exact mortgage rates in all honesty, I don't have it to hand where I am at today.

I am getting 4-5 calls a day from various agencies regarding work.

Okydoky25

After I took voluntary redundancy I was able to claim JSA for 6 months. I was advised that my redundancy money coud not be taken into consideration they wasn't interested in how much I had received not that I had received enough not to claim anyway.

getmore4less

Judo_Col wrote: »

I have offset improvements to it etc so there will not be any tax liability for a few years at least.

I am getting 4-5 calls a day from various agencies regarding work.

You have to be carefull about trying to offset capital improvements against rental income.


depends where you are but I spoke to a QA person recently and they said there was contract demand for testers on good daily rates.

might be an option to look at.

getmore4less

Okydoky25 wrote: »

After I took voluntary redundancy I was able to claim JSA for 6 months. I was advised that my redundancy money coud not be taken into consideration they wasn't interested in how much I had received not that I had received enough not to claim anyway.

It's not the redundacy capital, it's the rental and lodger income that will be taken into account

Judo_Col

getmore4less wrote: »

You have to be carefull about trying to offset capital improvements against rental income.


depends where you are but I spoke to a QA person recently and they said there was contract demand for testers on good daily rates.

might be an option to look at.

Thanks for the tip, I'm using a well recommended accountant to deal with the tax return who works with a property developer I know, from what he says its straight forward.

If I can just get something to tide me over I will be very pleased.

Acc72

Judo_Col wrote: »

Just wondered what peoples opinions were...

Should I stay or should I go?

As most replies have concentrated on your outgoings, for me the key driver is your income - how likely are you to find another job paying your current salary ?

If you are able to replace your current job quite quickly then you are quids in, everything else being equal (I am assuming that you can manage your outgoings ok on your current salary).

If you take the redundancy, reduce your borrowings and are still unemployed in 12 months then you will have a problem.