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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6640
Experience:  FCCA FCMA CGMA ACIS
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I have just been made redundant and am to receive a £30K tax

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I have just been made redundant and am to receive a £30K tax free sum.
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: I have just started my 3 month PILON, which means I will remain on the payroll until 31st May. Is it okay to accept the £30K payment now or should I requerst the payment is made on the 31st to avoid any taxation
Customer: replied 2 months ago.
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Customer: replied 2 months ago.
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Customer: replied 2 months ago.
The question is, can the £30K redundancy payment be made at anytime and still avoid taxation?
Customer: replied 2 months ago.
I don'y know if this complicates matters, but I also start a new job next Monday, does this have any impact on the £30k tax free payment?

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

The first 30K of a redundancy pay is tax free so grab it while you can! PILON is taxable in the usual way in the same manner as salary.

I do hope that you have found my reply of assistance.

Customer: replied 2 months ago.
My termination date was the 28th Feb, but to avoid going over the £100K tax band my 3 month PILON payment is to be paid equally over a 3 month period, so I therefore remain on the payroll until the 28th May. If the £30K payment is paid in my 1st months PILON, yet I remain on the payroll, will the HMRC attempt to tax the £30K?
Customer: replied 2 months ago.
Hello, is anyone there?

I would not put anything past HMRC trying to make a mug of a taxpayer in the hope they will just roll over and pay up, don't! They do not have a leg to stand on.

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