Redundancy & tax due

Hi,
Can anyone tell me if the following statement is true or not;

After the £30k tax free amount of redundancy has been deducted is the remaining amount taxed @ 40% ? 

I've been told that redundancy is subject to different tax then your salary and there is one rate and one rate only and that's 40% irrespective of any earnings in the current tax year.



Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546
    Name Dropper Photogenic First Anniversary First Post
    Forumite
    Very simply. In the month you get paid , yes you may well pay higher rates of tax. However this will self adjust if in subsequent months of the tax year if you find new employment. If not, you'll need to apply for a tax rebate once the tax year has finished.



  • Hi,
    Can anyone tell me if the following statement is true or not;

    After the £30k tax free amount of redundancy has been deducted is the remaining amount taxed @ 40% ? 

    I've been told that redundancy is subject to different tax then your salary and there is one rate and one rate only and that's 40% irrespective of any earnings in the current tax year.
    Whoever told you that was wrong.  Any amount above the £30K is added to your other income in the tax year and your tax due for the year will be on that combined basis.
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.6K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards