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    • justontime
    • By justontime 13th May 07, 12:53 AM
    • 508Posts
    • 490Thanks
    Redundancy pay and Child Tax Credits
    • #1
    • 13th May 07, 12:53 AM
    Redundancy pay and Child Tax Credits 13th May 07 at 12:53 AM
    I have been notified that I will be made redundant at the end of this month. I will only get statutory redundancy pay which I believe is not taxable and pay in lieu of notice which will be taxed. As I have care responsibilities (child on DLA high care, low mobility) I intend to remain at home and claim carers allowance and tax credits, husband works full time. The redundancy pay is not large and I will use most of it to reduce the mortgage but I am worried about how it will effect my tax credits. I have one child about to claim a student loan and the other about to claim EMA, I am not really sure how the redundancy pay will effect those claims. Any advice please?
Page 1
    • raq
    • By raq 13th May 07, 11:56 AM
    • 1,701 Posts
    • 642 Thanks
    • #2
    • 13th May 07, 11:56 AM
    • #2
    • 13th May 07, 11:56 AM
    My sister got made redundant last year and had no worries with benefits and they didn't ask about further figures. They seen the amount of money she had on her final pay slip but not questions asked. This was in the april and she started claiming jsa contribution based in october. Thankfully she is now in full time employment
    Tomorrow's just another day - keep smiling
    • lullable
    • By lullable 17th May 07, 10:16 PM
    • 5 Posts
    • 1 Thanks
    • #3
    • 17th May 07, 10:16 PM
    Redunancy pay
    • #3
    • 17th May 07, 10:16 PM
    The first 30,000 redunancy pay is non-taxable. Therefore if your lumpsum payment is 45,000 you only have to declare 15,000. This would be declared as "other income" on your annual declaration form. However, the first 300 of other income is not assessed - so if your total taxable other income was 15,000 then only write 14,700 in the box.

    If you invest your lump sum in a bank account - you'll have to declare the interest as "other income"

    Hope this helps
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