Redundancy and Re-employed

Spivo46

How does HMRC view this? If your role is redundant and you receive a large redundancy payment and then restart at the same company 2 weeks later in a new role, i am informed you automatically go on to 40% tax. Any thoughts??

General_Grant

Spivo46 said:

How does HMRC view this? If your role is redundant and you receive a large redundancy payment and then restart at the same company 2 weeks later in a new role, i am informed you automatically go on to 40% tax. Any thoughts??

HMRC view it as someone having received a redundancy payment - taxed as appropriate - and then being re-employed and will be taxed at whatever rate is appropriate for the taxable pay received in the tax year.

What figures do you have in mind for the pay before redundancy, redundancy amount, ongoing pay in new role.  And relevant dates for redundancy and re-starting?

Spivo46

General_Grant said:

Spivo46 said:

How does HMRC view this? If your role is redundant and you receive a large redundancy payment and then restart at the same company 2 weeks later in a new role, i am informed you automatically go on to 40% tax. Any thoughts??

HMRC view it as someone having received a redundancy payment - taxed as appropriate - and then being re-employed and will be taxed at whatever rate is appropriate for the taxable pay received in the tax year.

What figures do you have in mind for the pay before redundancy, redundancy amount, ongoing pay in new role.  And relevant dates for redundancy and re-starting?

It is complicated. Anything over 30k will be paid into my pension. However an employment lawyer has advised that receiving a payment after the termination date may not be deemed as tax free? My redundancy payment will be received 6 weeks after my last day, in the first month of the tax year, that is just the way the company works, so all very standard way of paying leavers. The Lawyer could not advise further and suggested i see a tax advisor (which will cost and leave me no better off?