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Which Tax Year Does My Redundancy Impact


Comments
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It is usually on the last date you are employed. From the above info that would be end of March 2024, so it would be the 2023/24 tax year. When it is physically paid is irrelevant, its your last contractual date of employment.0
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The GOV.UK site
https://www.gov.uk/redundancy-your-rights/tax-and-national-insurance
advises that....
"Any tax and National Insurance due on your termination payment will be taken automatically by your employer in your final payslip.
Your employer will put any taxable parts of your termination payment through their payroll and deduct any Income Tax or National Insurance under Pay As You Earn (PAYE)."
PAYE is normally deducted as at the date of payment so would suggest that a payment at the end of April '23 would fall in 23/24 tax year.
There may be some rules relating to redundancy that I am not aware of but nothing seems to be mentioned on the GOV.UK site.
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Many thanks for the replies.However, it looks like that nice Mr Hunt has addressed my problem by upping the annual allowance to £60k
I don't think making it easier to retire early was his aim and I'm not sure I'm the most deserving recipient of limited funds.1 -
I’m in exactly the same position as you with a £130k redundancy package in the next 9-18 months. I’m very happy with today’s announcement! Always trying to avoid higher rate tax where I can!0
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It worries me what companies you work for where you can plan redundancy? How odd.0
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In my case it’s a large IT company that always seems to be making redundancies as roles are moved offshore.
My role is customer facing, so less likely to be off shored.
However, I can request voluntary redundancy so that someone whose job is off shored and wants to stay with the company could move into my role.
I’ve been open with my manager, so we can pick a mutually beneficial time in the future, so I don’t leave with no warning and they’re left struggling to cover my work0 -
Sorry to reopen an old post, but I have a similar dilemma, was there a definite answer ?
There seems to be 2 answers, any Tax is based on the date the employment contract ends or on the date of the final payslip, which presumably could be delayed till the next tax year ?0
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