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Sam
Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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If my employment contract is terminated on Nov 30th, can the

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Hi , if my employment contract is terminated on Nov 30th , can the company delay all or part of the redundancy payment to the next tax year ? Is there anyway to technically manage or reclassify a large payment to achieve this if not possible as a redundancy payment?

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

Is it your request to delay the payment?

Customer: replied 6 months ago.
Customer: replied 6 months ago.
It is tax efficient to receive part or all in next tax year as no intention to work in following tax yr

ok this is more appropriate for our tax section, rather than law, so I will move it there

HI

I can assist - I am afraid with this large a gap from 30 Nov to 5th April HMRC are going to question the validity of the payment and why it was so long after your job role ceased. so I am afraid due t that reason the payment cannot be delayed without causing issues with HMRC.

However it may well be that you are due up to £30,000 tax free and there may be ways to mitigate some of the tax

So if you wish further advsie on this please advsie

1) Your salary up to 30 Nov - and are we talking about 2017 or 2018

2) The lump sum payment they will make to you and how it is made up (so what amount is statutory redundancy - what is pay in lieu, holiday pay, bonuses or commission etc etc and do you have a contractual right to receive it (what does your employment contract state)

3) Will you take up employment (or seek employment) after this one ceases or wait until after 5 April

I can then advise further

Thanks

Sam

Customer: replied 6 months ago.
What gap would be deemed acceptable
Customer: replied 6 months ago.
I may not see further employment

Hi

A few weeks at most and at a push leaving say beginning March and payment after 5th April anything more than this does not make a redundancy payment with the usual entitlements and tax relief considerations

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 14397
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
I have no way to mitigate the tax as oversubscribed on pensions and don’t want put more into eis or seis or vct. I am facing 45% tax rate with tax bill in 000s

Hi

Then I am sorry you will just have to suffer the tax position as to over extend the true payment date is not something HMRC will accept and I doubt your employer would agree anyway for the same reason

I wish there was some way I could help you lessen your tax position - but other than the fact that you will have unused personal tax allowances (if the combined income is less than £100K) and even this seems unlikely if you are to suffer 45% tax banding as this suggests combined income of over £150K then here is nothing more that can be done

Do let me know if I can assist further, or, if you have all that you need, it would be appreciated if you could rate me for the level of service and time spent on your responses (rather than the fact the answer is perhaps not what you wanted to hear)

Thanks

Sam