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Redundancy planning help

doggydogdog
Posts: 43 Forumite

Hi
I’m due to leave my company in march 24 and I have two questions..
1. Would I be better off hanging on until after April 6th new tax year as I won’t be working for at least 6 months as I’m going travelling.. this would mean my redundancy payment (50k) would be paid in 24/25 tax year so only £20k taxable at lower rate..
2. would I be better off leaving earlier as my payment would stay the same as long as I leave after October 27th 2023. I wouldn’t want ti leave much before January as I won’t be getting any income at all then.. but if by leaving earlier, I’ll pay a big difference in tax on the £20k it might be worth it if I haven’t earned my full year salary..?
I’m due to leave my company in march 24 and I have two questions..
1. Would I be better off hanging on until after April 6th new tax year as I won’t be working for at least 6 months as I’m going travelling.. this would mean my redundancy payment (50k) would be paid in 24/25 tax year so only £20k taxable at lower rate..
2. would I be better off leaving earlier as my payment would stay the same as long as I leave after October 27th 2023. I wouldn’t want ti leave much before January as I won’t be getting any income at all then.. but if by leaving earlier, I’ll pay a big difference in tax on the £20k it might be worth it if I haven’t earned my full year salary..?
My current salary is £45800 tax code 575l I have a company car for personal use. I get paid 4 weekly so 13 pay days a year.
Thanks for any help.. I’ve tried wasting several hours of my life on IR phone line but I can’t get any sense.
🤞🏼🤞🏼
0
Comments
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I doubt if HMRC would proffer any advice on tax planningIf you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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