Redundant in April

mncollyer

I am being made redundant on April 9th, I’m 53 with 35 years service, my payout I am considering taking the £30k tax free and paying the remainder into my pension, if I do this is it tax free as someone has said. 

If I take any over £30k does it go against next years earnings as someone has said the first £12k is tax free but I can’t find if this is true.
THANKS

Thrugelmir

Every tax year starting the 6th April you receive the personal tax free allowance.  Which is currently £12.5k.  Are you hoping to find a new job? As this will impact the allowance and potentially your overall tax position. 

mncollyer

Yes got interviews lined up already, I understand that the first 12k is tax free so if I draw above 30k I need to be aware that it will impact my potential earnings 

General_Grant

mncollyer said:

Yes got interviews lined up already, I understand that the first 12k is tax free so if I draw above 30k I need to be aware that it will impact my potential earnings 

spread equally over the year to 5 April 2022
depending on any other allowances etc, you would be paying tax on all other salary, holiday pay in this or future work in the tax year
I think you were saying you were aware of that, not so much that it impacts your potential earnings but does affect your nett pay

getmore4less

You can always load up you pension next year TAX year with the equivalent amount if you earn it so can in effect have access to the money but get the tax relief if you don't need it.

Any of the pay out taxable  like PILON or holiday