Redundancy Payment

Zidane007

Hi,  I am being made redundant on the 31st March 2021 and my payout plus pilon is well above £30,000. I asked the company if they could pay my Redundancy Package to me in April 2021 being the new Tax Year which would be more Tax efficient. They originally said yes no problem but have now come back and said that it can not be done and needs to be paid in this tax year.  Can someone confirm this is correct?
Thank You

daveyjp

The company will probably have their own accounting issues to consider and need to pay out this financial year.

Consider paying any amount over £30k into your pension to avoid the tax payment.

Zidane007

They are saying it is a HMRC requirement!

General_Grant

daveyjp said:

The company will probably have their own accounting issues to consider and need to pay out this financial year.

Consider paying any amount over £30k into your pension to avoid the tax payment.

Why select the specific "over £30K"?
The redundancy payment may be less than that.

General_Grant

Zidane007 said:

Hi,  I am being made redundant on the 31st March 2021 and my payout plus pilon is well above £30,000. I asked the company if they could pay my Redundancy Package to me in April 2021 being the new Tax Year which would be more Tax efficient. They originally said yes no problem but have now come back and said that it can not be done and needs to be paid in this tax year.  Can someone confirm this is correct?
Thank You

So were you asking that they pay just the redundancy pay in April and the PILON and ordinary pay in March?

Thrugelmir

Zidane007 said:

They are saying it is a HMRC requirement!

Your employer will get hit with additional employers NIC by splitting the payments.