Reducing redundancy tax

Mark_K_2

Hi There

Hope someone can help?

I am about to take voluntary redundancy which is due to be paid out in this financial year on 20th March,2008.

Is there anyway anyone can advise on reducing the amount of tax I will have to pay on my redundancy package plus severance pay. I know I will not have to pay tax on the 1st £30,000 but it is the rest as I have been told this will likely be in the region of £7-10,000 for the year and some of it will be at 40%. Normally my tax is at normal rate as my salary is less than £40,000 but with this years salary and the redundancy package together means I will be taxed on at 40%.

Would I be able to claim any of this tax back after the 1st April if I did not work?

Any help appreciated

Thanks
Mark

Sobraon

Additional pension contribution?

Mikeyorks

Mark_K wrote: »

Would I be able to claim any of this tax back after the 1st April if I did not work?

I assume that means 6th April (the first day of the 08-09 tax year)? ..... in which case the answer is 'no', I'm afraid.

If you're weekly paid - there will be a smallish sum due back in respect of the period 20th March to 5th April. If you're monthly paid - then your employer will be using the Month 12 tax tables at 20th March .... so the tax should be correct for 07-08.