Redundancy & Tax

redvalley

Hi. Is it true that redundancy payments after the first £30K are not taxed using your tax code and therefore tax is calculated as if you were earning this amount every month. Apparently it is up to the individual to claim tax back.
thank you

getmore4less

IT is now but you can get it back more quickly with the

P50 option if you don't have a new job immediately and also delay JSA by a month or two.

BlueIsTheColour

Redundancy up to £30k is not taxable... as technically it's a damages payment and as such not liable to tax and NI, however if there is a PILON payment within it then that element is potentially taxable, depending on the contractual situation.

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/Redundancy/DG_174330