Redundancy Payment & Saving

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82046260#Comment_82046260

A refund on what basis, i.e. how do you know what your taxable income will be for the remaining three quarters of the tax year?

Valley73

Exactly. Don’t expect a refund anytime soon. I went through the same process. HMRC took until December the following tax year to refund me!

Ocelot

https://forums.moneysavingexpert.com/discussion/comment/82046527#Comment_82046527

Did you need to contact them, or did they contact you? After my latest redundancy last year I was taxed on the terms I was on the previous year, ie as a higher rate taxpayer. Last tax year I earned literally nothing apart from 3 month's PILON, so would be hoping for a rebate.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82047280#Comment_82047280

Assuming you're not on self-assessment, HMRC will (routinely) calculate your tax liability for 2025/26 later this year, and refund you if you've overpaid.

LHW99

There's always premium bonds if you want to avoid tax on interest

M3Cobb

Thanks for all the advice! The money landed today and it feels like I've funded the increase in the Defence Spending plan looking at the tax! 😆