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Just don't know what to do.... redundancy approaching and unsure of how to make the most of it.
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unlikely_2
Posts: 8 Forumite

I wrote here a few weeks ago, and although I had a brief reply, I now have more info and I'm more confused about what to do.
I work part-time 21hrs pw and my partner is unable to work due to ill health. We have 2 children 12 and 17 and receive child tax credits, housing/CT benefit, and working tax credit due to my partner's incapacity. My partner has an open income related ESA claim, however we don't receive any of this, due to my income. They are part of the support group, so entitled to the disability premium, which is used as part on the calculations on the disregarded amount on our Housing benefit (it's complicated!) We have not been migrated to UC yet.
The business I work for will be closing soon and I will be made redundant.
I'll likely receive 60k, which will completely mess with my benefits, which we're dependent on and if we were to survive on the redundancy alone, this would not last long, once tax on the taxable amount is paid. Meaning fresh claims for benefits and as we're legacy claimants it would also mean migration to UC which I'd prefer to avoid for as long as possible.
I don't know a lot about this stuff, so bear with my ignorance.
My redundancy is this size as I've been a decent contributor to income and negotiations for a compensation settlement for the closure of the business due to redevelopment of the premises.
The redundancy is part enhanced and a termination bonus. I think.
I wondered if 30k (redundancy) could be sacrificed to pension, but would this count as the tax free element of redundancy? Would it also be considered intentional deprivation, in terms of any benefits?
Then I also wondered, (it's probably a silly idea), if the remaining 30k (termination bonus) could be paid to me in monthly instalments? If split up this way, would it still be liable for tax, if it falls within my tax free allowance - I'm on the payroll at work, but as I'd be no-longer on the payroll, once redundant, would I be able to use self assessment to submit these payments instead?
I'm registered for SA, as have very occasional freelance work.
This would give me 2yrs of a low income, that we'd be able to survive on, with some benefit top-ups, while I try to find work, which in what I do and at my age (52) is going to be pretty tough tbh.
My employer is pretty flexible about how payment is made, providing there isn't further cost to the company, (we have known each other for 25yrs)
I'm just trying to work out the best way to survive all of this.
Sorry this is so long - it's really complicated!
I'm pretty terrified actually.
The business I work for will be closing soon and I will be made redundant.
I'll likely receive 60k, which will completely mess with my benefits, which we're dependent on and if we were to survive on the redundancy alone, this would not last long, once tax on the taxable amount is paid. Meaning fresh claims for benefits and as we're legacy claimants it would also mean migration to UC which I'd prefer to avoid for as long as possible.
I don't know a lot about this stuff, so bear with my ignorance.
My redundancy is this size as I've been a decent contributor to income and negotiations for a compensation settlement for the closure of the business due to redevelopment of the premises.
The redundancy is part enhanced and a termination bonus. I think.
I wondered if 30k (redundancy) could be sacrificed to pension, but would this count as the tax free element of redundancy? Would it also be considered intentional deprivation, in terms of any benefits?
Then I also wondered, (it's probably a silly idea), if the remaining 30k (termination bonus) could be paid to me in monthly instalments? If split up this way, would it still be liable for tax, if it falls within my tax free allowance - I'm on the payroll at work, but as I'd be no-longer on the payroll, once redundant, would I be able to use self assessment to submit these payments instead?
I'm registered for SA, as have very occasional freelance work.
This would give me 2yrs of a low income, that we'd be able to survive on, with some benefit top-ups, while I try to find work, which in what I do and at my age (52) is going to be pretty tough tbh.
My employer is pretty flexible about how payment is made, providing there isn't further cost to the company, (we have known each other for 25yrs)
I'm just trying to work out the best way to survive all of this.
Sorry this is so long - it's really complicated!
I'm pretty terrified actually.
0
Comments
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I think this is far too complicated to depend on the advice of strangers.
I cannot see how you can avoid telling the DWP that your circumstances have changed - even if your employer agreed to pay you some in installments (and I think that would be rather dodgy for them) you will no longer be working for them. You would have to tell them that you had no employment and that the income you have is unearned. And if the business is closing how would they even pay you?
You might find the benefits board can offer some advice on that side - but I would still urge you not to depend on advice here but get it double checked because what you are suggesting is potentially very risky all around.1
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