SOSR Dismissal and final salary

normdeplume

Hello everyone,

My employer is due to let me go in the next few days for an SOSR. As it's not redundancy I have a three month notice period I will be taxed on.

What is the most tax-efficient way to receive this money? If it's paid as a lump sum wouldn't I be penalised by paying more tax up front? Would my actual tax would be less if I were to receive it as normal each month because of tax allowance and 20% and 40% tax bands?

I hope I'm making myself clear. Thank you in advance

NdP

normdeplume

Ok, so I discovered that it will even itself out.

But if they pay all in one month I'd actually benefit financially on national insurance because there is a cap on this.

So I'd only pay one month of national insurance not three. If they pay me in this tax year it should sort itself out as a rebate. Or an adjustment in tax in payroll of next employer if I work again soon.

And thus ends the shortest thread in MSE history.

getmore4less

If a new job will be an issue then there may be a benefit in carrying some payments into the next tax year but if you get a job and go over £10k little difference. the next step is if you hit 40% this year, that's a bigger target for next year.

some numbers would make it easier but looks like you have the basics in your head to sort it out yourself.