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  • FIRST POST
    • iceuk
    • By iceuk 8th Mar 18, 1:01 PM
    • 1Posts
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    iceuk
    My options for company payoff
    • #1
    • 8th Mar 18, 1:01 PM
    My options for company payoff 8th Mar 18 at 1:01 PM
    Hi,

    I've found myself in a situation where the company i work for is selling off one of it's products. The company that is acquiring this product will be my new employer as iím an important part of the deal and product.

    Now the really important part! The company i currently work for will be giving me a six figure sum as part of the deal, however I'm just a generic employee within this company and are unsure of the tax implications in regards to the said lump sum.

    What route should i be taking to get the best out of the deal?

    Iíve not be informed as of yet how they expect to pay me, but i do have leverage on this part.

    The sale should be taking place late April this year.

    Thanks!
Page 1
    • Linton
    • By Linton 8th Mar 18, 1:35 PM
    • 9,387 Posts
    • 9,519 Thanks
    Linton
    • #2
    • 8th Mar 18, 1:35 PM
    • #2
    • 8th Mar 18, 1:35 PM
    It depends on exactly what this pay-off is for. If its redundancy from the old company the first £30K is tax free and the rest taxed as income. If it is a Golden Hello by the new company it is all taxed as income. There may be clever ways for the bonus to be paid, eg in shares in the new company - I dont know, you would need an expert.

    Perhaps a maximum pension contribution may be worthwhile.
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