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bigduckontax, Accountant
Category: Tax
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Just got made redundant end of April. My redundancy payout

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Hi just got made redundant end of April. My redundancy payout was above the £30k tax free threshold. I just got my payslip and I attach below. I want to make sure that I will have no further tax liability on this in the 16/17 tax year on my SA. It looks like the tax free redundancy amount was offset against my actual tax liability for the month but I want to make absolutely sure that this all looks correct. I know I'll have to include it in certain sections on the self assessment form but I want to make sure I wont have any further tax liability.

Hello, I am Keith, one of gf the experts on Just Answer, and pleased to be able to help you with your question.

The tax deducted looks a tad high, but remember that the PAYE tables will assume that you are going to receive equivalent amounts each month for the rest of the year so in your case an over deduction may have been made. Furthermore the 30K non taxable element of your severance pay should have been deducted from your emoluments not adjusted in the tax area.

However, it will all come out in the wash as it were. If you are re-employed elsewhere then it will start to adjust with your next pay slip and if you go onto the dole then at the end of the tax year, if you are still unemployed, it will adjust out automatically and the Job Centre will make the refudns, if any.

I do hope that I have been able to shed some light on your position.

Customer: replied 1 year ago.
OK. Thank. But overall does it look like the correct (If not too much) has been deducted? My real goal is that I don't want to find that I owe a chunk on this at end of year.

I do not think you need to worry on that score this early in the tax year as the PAYE system will adjust the position and has ample time, 10 months, in which to do it.

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Customer: replied 1 year ago.
OK. Thank you.

Delighted to have been of assistance.

Thank you for your support.