Redundancy severance pay and Job seekers

economic

Hi there

my friend has recently been made redundant and will be receiving some severance pay later this month. It is tax free (less then £30k). My friend was wondering whether if she were to sign on to job seekers now whether the severance pay will be still paid completely tax free? or will for some reason due to the signing on job seekers she will have to pay tax on the servance pay?

thanks

anamenottaken

economic wrote: »

Hi there

my friend has recently been made redundant and will be receiving some severance pay later this month. It is tax free (less then £30k). My friend was wondering whether if she were to sign on to job seekers now whether the severance pay will be still paid completely tax free? or will for some reason due to the signing on job seekers she will have to pay tax on the servance pay?

thanks

No. If the severance pay is not taxable, it remains so.

Job Seekers Allowance is itself taxable.