Redundancy pay deductions

LudaMusser

Hi, 

After 6.5 years in my job I’ve had to take redundancy. My last day was June 30th and I received the redundancy pay this week July 6th

I just wanted to check that tax and NI contributions should have been deducted

I was paid a notice period (four weeks) and the above deductions totaling £700 were taken from this four week payment 

Should the deductions have still been made even though this is part of the redundancy package?

I was talking to somebody yesterday who put some doubt in my mind

Thank you

tacpot12

Tax and NI will be due on the any work you did during your notice period, any Pay In Lieu Of Notice (PILON) and on any holiday pay. The actual redundancy payment is not taxed if it below £30,000.

Your notice period is a contractual right and not part of the redundancy package. 

LudaMusser

Okay so the £700 deduction is correct

I’ve had so many issues over the years of not being paid correctly and overtime missing that I wasn’t filled with confidence

chrisbur

LudaMusser said:

Okay so the £700 deduction is correct

No one can tell you if the correct amount was taken without full details of the payment; only that a deduction for tax and NI should be made.

daveyjp

NI is calculated on a percentage of each monthly salary so if you receive a substantial amount one month NI may be far higher than you are used to.