Tax question on redundancy

youthful

Thank you Philfuller, that's really helpful, I did suggest the going and coming back as a contractor, seeing as the rest of the substantive team have upped and left and they've brought in a group of contractors to cover, I'm the only substantive one left!! but they ignored that option. Having been on the receiving end and seeing many others get mislead, I'm worried I'll be left with nowt! I'm aware that they have been asking other managers who are not on the same payband as me if they'd be willing to step up to the role, because I've been quite upfront about my concerns with them, but to date that hasn't really been reciprocated, so I think any bum on the seat will do hence them ignoring the contractor option I raised. I'm on a really tight timeframe now, so decision time very soon last day is officially 20th June, Yikes

getmore4less

The problem is that they can withdraw all offers and redundancy and just leave you in the job you have, even if they have already put you on notice.

youthful

No I am being offered a letter that's I've demanded really and its been checked by the union, that says I will not be offered suitable alternative employment or TUPE and my redundancy is assured. My concern is if I stay till the end of March, I'd get my redundancy in April 14, and I'm worried that will use up all my personal allowance for the year because I intend to get another job straight away (easier said than done perhaps!!) I think I need to speak to an accountant, because I've been told that the month you get your redundancy pay the tax office classes it as a months pay and will tax accordingly, so its not about claiming some tax back so much, its more about taking the redundancy at the most opportune moment for me. Thanks for all the comments

getmore4less

It's not about suitable alternatives they can withdraw the redundancy completely and have you just do your current job, the union might not like it but if you are not redundant not sure what they can do to insist a company makes people redundant.

Anyway that is not likely to happen.

The total tax is the same by the end of the year(tax is annual not monthly) all you have is a cash flow issue as you get over taxed in the month you get paid because of the way PAYE works, any excess paid reduces the tax on any JSA or other income in the rest of the year.

You can try to use a P50 but sounds like that is not appropriate if you will be trying to work.