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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10612
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I have applied for voluntary compulsory redundancy which has

Customer Question

I have applied for voluntary compulsory redundancy which has been approved but I have also been given the option of VCR and voluntary early retirement, both of which are a substantial lump sum. If I take both in the same tax year will I pay more tax?
JA: Have you talked to a financial professional about this?
Customer: No not yet
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: I have my final consultation meeting with my bosses on Wednesday and I have to tell them what I wish to do at the meeting
Submitted: 22 days ago.
Category: Tax
Expert:  bigduckontax replied 22 days ago.

You might, the first 30K of redundancy pay is tax free, the balance at your marginal rate of Income Tax (IT).

Customer: replied 22 days ago.
Thank you for your reply. The balance would be 61,000 and the lump sum for my pension is 31,000. I currently earn 45,000 a year so would this push me into a higher tax bracket?
Expert:  bigduckontax replied 22 days ago.

The higher tax rate kicks in at £50270 of taxable income, don't forget your Personal Allowance (PA).