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I've just been told I'm being made redundant, and my employer is keen to get it done v.fast, they're adding extra money to encourage me to go quickly rather than working my notice.
If the termination date is 5th April, but actual redundancy payout is later, which tax year would I include the money? 2017/18, or 2018/19?
Redundancy pay is tax free, only the payment in lieu of notice is taxable if stated in your employment contract. If your termination date is 5th April you should receive your PILON on that date too as per RTI rules. The redundancy pay can be after that date but usually within the week and as above tax free.
Only the first £30,000 is tax free if you are lucky enough to be getting more than that. After £30,000 you pay at your marginal tax rate.
Redundancy pay is tax free,
Eh no. As enmac says above.
I got an incentive from my employer when I was made redundant last year. This was to stay until the end of the 6 months notice they gave me. This and the redundancy pay, capped at £489 per week and limited to 29 week IIRC, was tax free. I had to pay tax un the holiday pay. I cancelled any holiday I'd booked and took the money instead. Thought that I might have a lot of free time after the 6 months, but luckily I found a job .
Got some nice rebates from the tax man too. The first month in the new job I paid 87p in tax. The next they gave me £675 back.