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bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am currently a higher rate tax payer and I am likely to be

Customer Question

I am currently a higher rate tax payer and I am likely to be made redundant on the 31st March 2016. I know that my organisation will pay tax to the HMRC on anything above £30,000 (I think my settlement will be circa £50,000).
My questions is if I get the organisation to agree pay my redundancy in the new tax year (i.e.: after 6 April 2016) AND I then don't work but only study for the whole of that tax year so am not earning will I have to pay any tax on the portion above £30,000?
The reason I am asking is that this is potentially worth £8000 as a higher rate tax payer so I am trying to work out if I should study straight away or try and find a new job and retrain at a later point.
Note: I realise that I will have to claim any tax paid via self assessment at the end of the year.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. If your redundancy settlement is paid in the 16/17 tax year then your proposals could well result in a nil or minimal tax bill in the year after your tax free 30K. I do hope my reply is of assistance.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3097
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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