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bigduckontax, Accountant
Category: Tax
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I’m looking for advice on tax I would need to pay on a

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Hi, I’m looking for advice on tax I would need to pay on a redundancy payment.
JA: For which tax year do you need advice?
Customer: 2020/2021
JA: Anything else you want the Accountant to know before I connect you?
Customer: How much will the advice cost me?
JA: The Expert's answer will cost $10 to $100, depending on the issue type and time to respond. You'll see the exact amount on the next page and can decide then. It's way less expensive and more convenient than any face-to-face visit.
Customer: Is this UK tax law?

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 redundancy pay is tax free, but remember that things like PILON will stall attract normal Income Tax (IT).

Customer: replied 5 days ago.
I’m taking voluntary redundancy and have been offered a package which includes:
Statutory redundancy pay of £6.4k (“I”)
Termination package: £28.4k. (“II”)
The package is largely due to maternity pay. Statutory maternity pay would be £10.2k while the company maternity pay is £17.8k. Payable in 3 monthly instalments (end Nov, Dec and Jan). For calculation of income tax can I use I + II or do I need to pay the tax on the Stat or corp maternity pay?

Right, your Statutory Maternity Pay is taxable. The company maternity pay would be taxable also. That leaves 28.4K termination package which, as it is below 30K, would be tax free.

Do you really need a telephone call nlw?

Customer: replied 5 days ago.
A call would be great. Do consider that this maternity pay is paid out in one go and this happens after the employment terminates and the maternity leave starts. It served as a guidance to the size of the package.

I think you will find it easier to ring me. I am on 01750 725420.

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