Any tips on tax position-new job following redundancy

sheilds

Hello
I was made redundant in July this year . My payoff was heavily taxed and included the first £30k tax free as I had over 30 years service.
I have now secured a new job starting on 12th Oct. Is there anything I can do to ease the tax position on the new job or wil I just have to accept the fact that my redundancy payment has now moved me into a 40% tax situation?
I appreciate that you may need more info-just a general question on my part . My redundancy went towards clearing my debts and reducing my mortgage so I am not as well off as it sounds.
Thanks in advance.
S.

Savvy_Sue

I'm sure people will be more helpful if you give more detail:

Figures from your P45 - gross payments, tax deducted

New salary (roughly will do for that)

Any benefits via your new job?

Do you have a pension plan?

Did you claim JSA? It will have been paid gross but is taxable, and it can take a while to get your P45 when you sign off.

Are you married / in a civil partnership with someone who doesn't use their personal tax allowance?

Are there children around?

getmore4less

Depending on the numbers you have to watch for the the other impacts of the payment and new income.

Will you go into the next bracket

NI is at 12 % on new income so marginal rate will be 52%.
(unlikley you have hit the NI cap if redundant in July)

depending on how the payment was made you may have been overtaxed and if this has not been claimed back this will reduce the tax on new income.

Maxing out the pension is one way to reduce the tax but does lock the money up, that may not be that big an issue as you are probably around 50 anyway with 30 years service.


Not something you asked but using the cash to reduce debts before secruing a livable income is not usually recomended, seleced debt clearence is sensible.