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Is severance pay taxable?
tombs_2
Posts: 6 Forumite
in Cutting tax
Hi All,
Early last year the company I work for announced that they would be making redundancies. I applied for voluntry redundancy. In December last year, they were taken over by another company who cancelled the redundancies, but they said that anyone who still wanted to go would be allowed to leave.
Because they are going to be getting someone in to replace me, they cannot make be redundant, it has to be severance.
So...my question......I believe that redundancy pay is not taxable, but is severance pay taxable?
I can;t find any info about it on the web.
Any help is gratefully recieved.
Early last year the company I work for announced that they would be making redundancies. I applied for voluntry redundancy. In December last year, they were taken over by another company who cancelled the redundancies, but they said that anyone who still wanted to go would be allowed to leave.
Because they are going to be getting someone in to replace me, they cannot make be redundant, it has to be severance.
So...my question......I believe that redundancy pay is not taxable, but is severance pay taxable?
I can;t find any info about it on the web.
Any help is gratefully recieved.
0
Comments
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tombs
There is no easy answer to this as it all depends in the wording, why and wherefor's of the severence.
My guess (sorry I cant be more specific) in this instance would be that the payment IS taxable
tigtag:heartpuls baby no3 due 16th November :heartpulsTEAM YELLOWDFD 16/6/10"Shut your gob! Or I'll come round your houses and stamp on all your toys" The ONE, the ONLY, the LEGENDARY Gene Hunt :heart2:0 -
Tombs
I'd agree with tigtag on this, it would depend on the wording. But breifly put if you are contractually entitled to the payment then it is taxable.
In this case it sounds like a pay in lieu of notice which would be taxable.0
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