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bigduckontax
bigduckontax, Accountant
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I am due to retire with a redundancy payment of £163k at the

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I am due to retire with a redundancy payment of £163k at the end of December. Would it be beneficial to receive the sum over two tax years with just the £30k tax free element paid this tax year?
Submitted: 26 days ago.
Category: Tax
Expert:  bigduckontax replied 26 days ago.

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.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 26 days ago.

Thank you for your support.