Redundancy taxation Query

ciscoda

I have been offered and taken a redundancy package, the terms are quite generous and I am walking away with £90000, I know I will pay tax on the amount over £30k, but can anyone advise on the following questions ?

1. What will be the remaining amount after income tax ?
2. Are there any steps I can take to reduce the effects of taxation ?
3. If I were to take a year out and have no further employment until 2015 would I be entitled to a tax rebate, and if so how much would the rebate be and when could I claim the tax back..?

Any other related advice would be appreciated ......

getmore4less

You will get overtaxed on the £60k but if you add that to your earnings for the year that should be taxed as any calculator will tell you but you will need to get the overpayment back

I use

http://www.listentotaxman.com/

Note this will not get the NI correct

If the plan is to not work or claim any taxable benefits look up a P50 on HMRC site that will set the tax rebate in order.

1. Calculating the actual tax need looking up the rules I can't remember them
2. A pension contribution will reduce the tax liability.
3. P50

getmore4less

a quick google

http://www.hmrc.gov.uk/individuals/redundancy-ee.htm

there will be loads of pages on HMRC have a browse


edit: that link not so good looking for anoher one


http://www.taxation.co.uk/taxation/Articles/2013/02/27/303301/taken-out

says on taxed on non cumulative which will be similar to PAYE as we are in the first month.

so about £32k-33k, tax of around £26k, but for the full year on £60k should be around £14k so a £12k(ish) refund will be due if you don't work.

very rough figures

td_100

I was made redundant in March and my employer would not defer to the new tax year so I assume I have no chance of a tax rebate if I take a year out?