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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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I am being made redundant on 31 March. My employer wants

Resolved Question:

Hi. I am being made redundant on 31 March. My employer wants to make the redundancy payment with my final salary on 18 March. But the taxed element (over the £30k tax free allowance) will all be in the £100k to £120k income bracket. Therefore taxed at marginal rate of 60%.
I have asked my employer to pay in April (next tax year) so that I would only pay at 40% (assuming I get a new job!) and they say that it would be fraud to defer the payment - I guess because others are being made redundant in other parts of the organisation at the same time and will be paid in March.
Just seem sensible planning to me.
Are they right to be scared of HMRC so that they won't defer the payment for me?
Thanks.
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
HelloI can understand your wishing to delay the payment but it is your termination date that determines the employer's need to pay you and why they cannot delay the payment.They must make the payment when they dismiss an employee, or soon after. Although I am sure the company would like to be able to assist you in your personal concern they need to pay and declare based on the termination date.
Customer: replied 1 year ago.
Thanks. But they are paying me just BEFORE my Termination date. Not AFTER.Does that make any difference?
Expert:  TaxRobin replied 1 year ago.
The payment before would not make a difference. They are required tot pay within the time of the termination date.The time of payment for salary and benefits is up to the termination date.You also mentioned the number of others being made redundant. That places the company in an additional reporting and the rules for labor.All their dates and reporting must conform so the company remains compliant.
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