Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
You have the situation correct, the first 30K of redundancy payment is tax free and the balance taxed at your marginal rate of tax. 133K in one lump sum would immediately eliminate your Personal Allowance (PA) in the year of payment as it would push you over the 100K. Thus tax wise it is better to receive the settlement over two tax years to preclude this. The only danger is your ex employer going pop in between.
I do hope that you have found my reply of assistance.
Thank you for your support.