Starting a new role on AL before redundancy exit

I’m trying to find out any tax implications or any other unforeseen issues. I’ll try to keep this simple but it is a little complicated. 

I have been offered voluntary redundancy which I will be taking. My notice period is 12 weeks, and official exit date will be 19th May (notice will be served in 19th Feb). 

I am currently interviewing for other positions, and one in particular is seeming pretty positive. I’m getting the impression however they would want me in role as soon as possible. 

My current manager said they would be happy to move up my exit date if I need to, HOWEVER, I need to let them know the new date by Feb 9th (this Friday) which just isn’t doable with the recruitment timeline. 

If I kept my exit date as 19th May, would there be any implications if I went on AL from beginning of May and started my new job while on AL? 

This is obviously a worse case scenario, but I want to make sure I have considered everything in any eventuality. 

I know I’ll pay tax on two jobs, and will likely be on emergency code which will get fixed later and I’m comfortable with all that. 

I’m more worried about any other implication, redundancy tax being imposed (it’s under £30k) or anything else. 

I have enough holiday to cover this and I know my manager would be happy to approve holiday for that time. 

I have 11 days annual leave carried forward from last year, and will have accrued 10 days by the exit date. Total 21 days AL available by 19th May. I’m also phasing back from maternity leave and my Mat cover is still in place, so there’s really no issues with me not being there at the end. 

Comments

  • MattMattMattUK
    MattMattMattUK Posts: 8,256
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    CMB93 said:
    I’m trying to find out any tax implications or any other unforeseen issues. I’ll try to keep this simple but it is a little complicated. 

    I have been offered voluntary redundancy which I will be taking. My notice period is 12 weeks, and official exit date will be 19th May (notice will be served in 19th Feb). 

    I am currently interviewing for other positions, and one in particular is seeming pretty positive. I’m getting the impression however they would want me in role as soon as possible. 

    My current manager said they would be happy to move up my exit date if I need to, HOWEVER, I need to let them know the new date by Feb 9th (this Friday) which just isn’t doable with the recruitment timeline. 

    If I kept my exit date as 19th May, would there be any implications if I went on AL from beginning of May and started my new job while on AL? 

    This is obviously a worse case scenario, but I want to make sure I have considered everything in any eventuality. 

    I know I’ll pay tax on two jobs, and will likely be on emergency code which will get fixed later and I’m comfortable with all that. 

    I’m more worried about any other implication, redundancy tax being imposed (it’s under £30k) or anything else. 

    I have enough holiday to cover this and I know my manager would be happy to approve holiday for that time. 

    I have 11 days annual leave carried forward from last year, and will have accrued 10 days by the exit date. Total 21 days AL available by 19th May. I’m also phasing back from maternity leave and my Mat cover is still in place, so there’s really no issues with me not being there at the end. 
    It depends on your contract, but likely a breach of your standard employment contract, as well as likely breaching your voluntary redundancy agreement, both of which could be serious, the latter could negate your voluntary redundancy payout for example.

    You could ask if they would consider PILON for the holiday pay period. However I would also take the view that any good employer will be reasonable about things and will wait for your notice period to expire, any potential employer that is pressuring you to start whilst still employed elsewhere is a very bad sign to start with. 
  • CMB93
    CMB93 Posts: 27
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    CMB93 said:
    I’m trying to find out any tax implications or any other unforeseen issues. I’ll try to keep this simple but it is a little complicated. 

    I have been offered voluntary redundancy which I will be taking. My notice period is 12 weeks, and official exit date will be 19th May (notice will be served in 19th Feb). 

    I am currently interviewing for other positions, and one in particular is seeming pretty positive. I’m getting the impression however they would want me in role as soon as possible. 

    My current manager said they would be happy to move up my exit date if I need to, HOWEVER, I need to let them know the new date by Feb 9th (this Friday) which just isn’t doable with the recruitment timeline. 

    If I kept my exit date as 19th May, would there be any implications if I went on AL from beginning of May and started my new job while on AL? 

    This is obviously a worse case scenario, but I want to make sure I have considered everything in any eventuality. 

    I know I’ll pay tax on two jobs, and will likely be on emergency code which will get fixed later and I’m comfortable with all that. 

    I’m more worried about any other implication, redundancy tax being imposed (it’s under £30k) or anything else. 

    I have enough holiday to cover this and I know my manager would be happy to approve holiday for that time. 

    I have 11 days annual leave carried forward from last year, and will have accrued 10 days by the exit date. Total 21 days AL available by 19th May. I’m also phasing back from maternity leave and my Mat cover is still in place, so there’s really no issues with me not being there at the end. 
    It depends on your contract, but likely a breach of your standard employment contract, as well as likely breaching your voluntary redundancy agreement, both of which could be serious, the latter could negate your voluntary redundancy payout for example.

    You could ask if they would consider PILON for the holiday pay period. However I would also take the view that any good employer will be reasonable about things and will wait for your notice period to expire, any potential employer that is pressuring you to start whilst still employed elsewhere is a very bad sign to start with. 
    Thank you - it did feel a little wrong, suppose I was trying to find a way to maximise money coming in. 

    It’s a scary thing leaving a job - but I think it’ll all work out! 
  • TELLIT01
    TELLIT01 Posts: 16,256
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    If you hand your notice in before the redundancy letter is issued I would expect normal terms to apply.  That would mean no redundancy pay.
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    The other risk is that they cancel your annual leave, which they can do, leaving you having to be in two places at the same time. Clearly you'd be AWOL from one of the jobs and likely to be dismissed for gross misconduct. 

    You could ask for PILON but you're more likely to get simply a shortened notice period which also removes your double pay problem. 
  • TELLIT01
    TELLIT01 Posts: 16,256
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    Although the OP has x days leave, the employer makes the decision on whether that leave has to be taken before departure, taken as holiday pay or any combination of the above.  The OP can't just demand to take it as holiday.
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