Taxable Allowances and redundancy

skyguy1981

Looking for some help here or a point in the right direction please.
Air Crew currently being made redundant, and a package negotiated on basic salary.


On top of basic salary we receive allowances for food, and drink whilst we are away from home.
currently the allowances are 68% tax free, however HMRC are going to possibly change the tax free part of the allowance and make it fully taxable.
my question is if the allowance becomes fully taxable, does it then become part of salary?
Struggling to get an answer.


Any advice would be gratefully received.


Thanks

getmore4less

Are you referring to FRE or additional expenses?

Can't the employers just go to fully receipted HMRC approved business expenses 100% not taxable.

antrobus

skyguy1981 wrote: »

Looking for some help here or a point in the right direction please.
Air Crew currently being made redundant, and a package negotiated on basic salary.

On top of basic salary we receive allowances for food, and drink whilst we are away from home.
currently the allowances are 68% tax free, however HMRC are going to possibly change the tax free part of the allowance and make it fully taxable.
my question is if the allowance becomes fully taxable, does it then become part of salary?
Struggling to get an answer.


Any advice would be gratefully received.


Thanks

I think I get it. The redundancy package is based on basic salary. But you also receive an allowance, part of which is tax free, and you are asking whether or not a HMRC decision to make it fully taxable, would make the allowance part of basic salary, and therefore increase the value of the redundancy package.

I think the answer would be 'no'.

skyguy1981

Hi Antrobus,
you got it in a nutshell. if you could expand on why it'd be a 'no' even if just briefly, it'd put my mind at rest.
many thanks

skyguy1981

Thanks for your thoughts, Antrobus has hit the nail on the head!

getmore4less

Even if you could get things included for statutory redundancy an employer can use anything they like calculating enhanced packages as long as the result exceeds the statutory payment.

skyguy1981

So, getmore4less what you're saying is that if we have an enhanced package that goes above statutory we can't ask for more because its been negotiated, and is over and above? I think I'm getting the picture now.


Many Thanks.

getmore4less

You can ask for more but I am guessing you are part of collective negotiations by the unions.

You are probably bound by those so you have to complain to those representing you that they need to up their game and get a better deal for everyone.

skyguy1981

thanks for all the advice. Will have a word with our rep.