NI on redundancy payment over £30K

CRAIGSVILLE1

Hi all,

I will be made redundant end of June , but my final payment + redundacy payment will be the middle of the month, so b4 I get my p45
Iv'e not been told my final payment yet, but normally, will i have to pay NI payments on my redundacy payment over the tax free £30k ??


Thanks

singhini

I thought Redundancy was paid tax free and NI free upto £30,000

Any money over £30,000 and you pay Income Tax but no NI  (Only the employer still has to pay their NI).

I think the regular monthly salary (which does not form part of your redundancy payment) but does form part of your final payment is still subject to income tax and NI (assuming you earn enough to pay tax).

NB: if you get benefits like a company car or laptop i think that also gets converted into a cash value and is added to your redundancy payment (and not added to your final salary) - i think???

Don't take this a gospel, wait a bit longer and hopefully someone can substantiate or rebuke what i've said.

Your HR dept should be able to tell you. 

penners324

NI and income tax is payable over £30k but it's 2% at that rate