After Redundancy

luckbox

Hi

I volunteered for redundancy when our department got round to it and was fortunately accepted just before Christmas. I have a settlement agreement signed by myself and solicitor, so that part is done. My leave date is 22nd March so just completing knowledge transfer etc at the moment.

My P45 will only come after my redundancy is paid, which I negotiated to be in April to limit the tax hit that I am going to take (60k payment). When claiming for contribution based JSA, what will I need to take along? I have never claimed benefits before so would like to be prepared. Presumably, they cannot pay me anything until they have seen my P45, but what else do they need? Passport and a recent bill?

Thanks

Akahotpot

Apply online
You will get an appointment with the job centre
Attend with ID and redundancy info, you can give them your P45 later

Ahsoka

You don’t need to supply your P45 for contribution based JSA. As the previous poster mentioned apply online and you’ll be sent through an appointment. All you need to take to that is a couple of forms of ID (Passport, Driving Licence etc) and a letter detailing your redundancy.

This is speaking from experience a couple of months ago. I’ve never been asked for anything else.

Notnewnotold

Fingers x'd for you, I'd never claimed benefits before my 6 months of contribution JSA, but I got lucky with my job coach, he realised he wasn't going to add any value to my job search so every 2 weeks we just had a chat about the good old days in the city. Turns out he used to work in my industry himself. Go figure.

As for the tax hit, I found that a big pension contribution reduced it even further, not sure if an option for you... bear in mind JSA is taxable, an expensive learning experience for me...

luckbox

Thanks for the responses. Seems straightforward enough

As for Pension, it was certainly something that I considered for a while, but I am 40 and have been putting into a final salary for a long time in my current job, so I am in a reasonable position currently... I fancy taking up contracting now with this as a healthy pot to underwrite the extra risk.

I think when I am up and running again, I will be putting a lump of it into a SIPP though, just maintain 10-15k for emergencies.


I think JSA is probably more worth it for the state pension credits to me, but never knew it was taxed. Many thanks, although I suppose it doesn't surprise me

Notnewnotold

luckbox wrote: »

Thanks for the responses. Seems straightforward enough

As for Pension, it was certainly something that I considered for a while, but I am 40 and have been putting into a final salary for a long time in my current job, so I am in a reasonable position currently... I fancy taking up contracting now with this as a healthy pot to underwrite the extra risk.

I think when I am up and running again, I will be putting a lump of it into a SIPP though, just maintain 10-15k for emergencies.


I think JSA is probably more worth it for the state pension credits to me, but never knew it was taxed. Many thanks, although I suppose it doesn't surprise me

Not sure about the state pension credit benefit to JSA, at least for you. If you're saying you get a 60k settlement in the new tax year, presumably 30k will be treated as income you'll pay tax and NI on. This might be a q for the pension board but as a years voluntary NI for pension credit was about £760 last year, and you'll pay more NI than that on the 30k taxable redundancy, does that mean this alone will fully pay up your stamp for the 19/20 year?

Also watch out for how much you're taxed, if this is month 1 of next tax year, I suspect HMRC will assume your monthly salary is 30k (i.e. 360k annual) and tax you accordingly, so you may wave goodbye to the best part of half of that until you can reclaim it later...

Been there, done all this by the way... only difference was that my settlement was in October (few years back) and was already into the 45% band then so paid every penny possible above the 30k into pension, far more obvious choice for me as I had some prior year allowance I could use.