Impact of Redundancy pay

spireite1866

Good morning,
I have a, potentially daft, question re; an upcoming redundancy settlement and the impact it may have on what we are currently entitled too (mainly the free nursery hours)

I am being made redundancy at the end of October after a fairly significant tenure so I am entitled to a decent pay-out (above what the statutory might be). Current earnings allow us to claim the free school hours for our 3 y/o daughter, but I think the redundancy pay-out will push us over the limit for the 25/26 tax year - even with the tax free element of the redundancy entitlement.

My question is, do we just pull our claim for the nursery hours now before term time, stop them after the first term after we have had the redundancy payment or something else? Wasn't 100% sure what to do as don't want to end up with a tax bill when I do a self assessment 

Cheers.

Tree_pipe99

Do you have an option to move the taxable redundancy payment to your pension (before tax)? I did that and it saved any headache on a later tax bill.

sheramber

spireite1866 said:

Good morning,
I have a, potentially daft, question re; an upcoming redundancy settlement and the impact it may have on what we are currently entitled too (mainly the free nursery hours)

I am being made redundancy at the end of October after a fairly significant tenure so I am entitled to a decent pay-out (above what the statutory might be). Current earnings allow us to claim the free school hours for our 3 y/o daughter, but I think the redundancy pay-out will push us over the limit for the 25/26 tax year - even with the tax free element of the redundancy entitlement.

My question is, do we just pull our claim for the nursery hours now before term time, stop them after the first term after we have had the redundancy payment or something else? Wasn't 100% sure what to do as don't want to end up with a tax bill when I do a self assessment 

Cheers.

https://www.gov.uk/find-hmrc-contacts/childcare-service-helpline