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Redundancy, PILON and drawing workplace pension
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taff27
Posts: 6 Forumite

I'm taking VR shortly and will receive around £60k redundancy, including 13 weeks Pilon & pro rata leave payment. Although under 55 I am also able to access my workplace pension which I intend to do. This will provide an additional lump sum and an annual pension of approx. £17k which I will start to receive at some point in July. It is my intention/wish to seek some form of employment going forward whether that be part time or full time etc, but I am concerned that if I attempt to enter the jobs market too soon I will be penalised via tax. Am I better taking some time away from employment for 3 to 6 months or maybe longer. Or is it the case that I will taxed heavily no matter what I do and what specifically will I be taxed on and at what rates?
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You will taxed on what you earn, so will make no difference to the amount of tax you pay unless you wait too the next tax year to restart work again.
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