Redundancy tax free payment

When you're made redundant is the tax free element of your redundancy put on your P45?
Also will receiving the tax free cash have an effect on the married couples tax allowance?


  • chrisbur
    chrisbur Posts: 4,013
    Name Dropper First Anniversary First Post
    The P45 earnings figure is your taxable pay, any non-taxable payments will not be included.
    As I understand it the married couples tax allowance is based on you paying tax at the basic rate so any tax free payment will have no affect on this.
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