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Leaving job, tax implications

I am leaving my job as part of a VR agreement at the end of April and am unsure what to do about disclosure vs what my employer will do

At the end of this month I will receive a seperate bonus but one month after leaving I’ll receive a payment of x month notice + redundancy payment and I understand that redundancy payment to be tax free if under £30k which it easily is. 

I want to disclose the correct info and pay the correct tax. I’ve listed some assumptions below

1) on March payday where I receive my bonus or a few weeks before, update my 2025 earnings to add the bonus amount on top of my salary

2) in April (before I leave) update my earnings for 2026 with the expected 1 month of pay + the notice payment (do I include the tax free redundancy payment in the total and will HMRC be told what it is by my employer?)
 

Comments

  • Brie
    Brie Posts: 14,953 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    it should all be on PAYE as normal so I don't think there's anything for you to report.
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  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 5 March at 5:15PM
    Your employer will automatically report the data to the HMRC. There's nothing for you to do. 

    Your personal tax liability for 25/26 will depend on what you earn in the period. 
  • penners324
    penners324 Posts: 3,526 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Unless you earn over £100k you don't need to do anything. Paye does it all
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