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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5141
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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pls is redundancy payment taxablej

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pls is redundancy payment taxablej
Hello and welcome to the site. Thank you for your question.

Employees can receive up to £30,000 as a ‘qualifying termination payment’ free of tax and National insurance. This amount includes any statutory redundancy pay to which you are entitled. If you receive more than £30,000, then the extra amounts over the £30,000 limit are taxable.

Some payments which are made when someone is made redundant are always taxable. These include amounts which are paid under a contact of employment such holiday pay, bonuses, and arrears of pay. Payments in lieu of notice may be taxable or not. The exact position depends on a range of factors that will include the employee’s contract of employment, when notice of redundancy was given and how the pay in lieu of notice has been calculated.

More information on Redundancy payments is covered here


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