Leaving date or payment date for tax

I'm due to get made redundant on 30/3 I've currently. L new job lined up but hope to get one within s few months of the start of the tax year.

My redundancy pay is due to be taxed at 40% less redundancy tax allowance as my salary just pushed me into the 40% tax band.

If I don't get a job for a few months I'll be in s far better financial position if my redundancy pay uses the following years tax allowance.

Does anyone know if it's leaving date or payment date that is used for tax purposes. I suspect I'll be paid my redundancy in the normal payroll run on 15th April

Thanks

Replies

  • I'm due to get made redundant on 30/3 I've currently. L new job lined up but hope to get one within s few months of the start of the tax year.

    My redundancy pay is due to be taxed at 40% less redundancy tax allowance as my salary just pushed me into the 40% tax band.

    If I don't get a job for a few months I'll be in s far better financial position if my redundancy pay uses the following years tax allowance.

    Does anyone know if it's leaving date or payment date that is used for tax purposes. I suspect I'll be paid my redundancy in the normal payroll run on 15th April

    Thanks

    Tax should deducted when it is paid - so if paid on or after 6 April it will be taxed in the new tax year. However you do need to check with your employer in case they pay redundancy at the time of leaving, only they will be able to tell you categorically.
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