Redundancy £30k

madeinireland_2

Just a quick question on the £30k redundancy that is supposed to be tax free....

I know we are not taxed on it as such but does it act as income during the year such that if I earned an additional £20k during the year and the higher rate point was say £40k that I would get taxed 20% on the first £10k of my additional earnings and 40% of the remaining £10k or would the additional earnings be taxed at £11k no tax and £9k at 20%.


Thanks...

[Deleted User]

madeinireland wrote: »

would the additional earnings be taxed at £11k no tax and £9k at 20%.

That's my understanding

madeinireland_2

Thanks very much