NI from redundancy payment?

Freddiefitz_2

I have been made redundant and received my redundancy payment. No tax on the first £30000 - that is ok. Then though, tax and NI taken from the rest, employer has also made NI contribution (hefty amount) to the tax man. I did not have payment in lieu of notice, just finished my contract after 3 months notice and then paid a straightforward redundancy payment. I did not think NI was due on this, am I wrong? 

Andy_L

Your employer is liable, AFAIK you aren't unless it was PILON or gardening leave (which you say it isn't). I suspect that your employer ticked the wrong box & it went through payroll as a payment subject to employee's NI.


"Your employer will pay employer Class 1A National insurance on any amount over a combined total of £30,000."

https://www.gov.uk/termination-payments-and-tax-when-you-leave-a-job/what-you-pay-tax-and-national-insurance-on