Redundancy settlement and PILON

sparkster86

Hi all

really looking for some guidance here as can’t get my head around my situation.

offered an ex gratia/enhanced redundancy package today by my employer.

been here 11 years

currently on basic salary of £46500 per year with an additional £400 per month car allowance to add on.

i have been offered -

11 weeks notice paid in lieu of notice £9,847.12
an ex gratia/enhanced redundancy payment £19,694.23
Pro rata bonus amount for the year £2,824.03
Pay in lieu of accrued but untaken holiday 8 days

what am I going to pay tax on? Any idea to work out how much tax and NI I will be deducted?

thanks

sparkster86

Also will be entitled to claim any benefits when my employment ends mid august?

sammyjammy

Everything except the actual redundancy payment will be liable for tax and NI.  If you are seeing work you can claim New Style JSA for six months, longer if you need to for NI credits only.  Any means tested benefits will be dependant on your circumstances.