Voluntary Redundacy, Tax and New Job

andrewpickford81

Hi,


I'm hoping for some help (aren't well all?)


in September I took I sizeable voluntary severance package from my company - 30k of which was tax free - as standard I believe.


Last week I was offered a new job, close to the money I was on previously.


How will this affect my earnings for the remainder of the tax year? Will the 30k come back into effect??


I don't want to post financial details here, but if anyone can help and would be willing to PM, id be grateful.


Thanks

Keep_pedalling

Posting financial details is usually necessary when people want help, so for future reference don't use your real name as your user ID.

To answer you question though, no the £30k is still tax free, but anything you got above that is treated as income so will impact on the tax you pay for the rest of the year through your new job.

kidmugsy

Keep_pedalling wrote: »

the £30k is still tax free, but anything you got above that is treated as income so will impact on the tax you pay for the rest of the year through your new job.

@OP: so you may want to make enough of a pension contribution to avoid 40% tax (or 60% tax, or whatever).