MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I have to pay someone redundancy and have a question Ive been unable to get an answer on from all normal sources.
I need to know whether the termination payment (which is considerable) could be paid over two tax years with the majority being paid on say 29 March and remainder on say 10 April. His aim is to keep the 10/11 tax year total earnings below 100k threshold and therefore keeping his personal allowance.
If I can help him get the most money possible that would be good.
Over to the forum.............. Cheers.
is it payment in lieu of notice or otherwise does he have entitlement to it, or is it customary to make these from your company? If the answer is no to all, it might be possible to pay it tax free up to £30k....
http://www.hmrc.gov.uk/manuals/eimanual/EIM12977.htm is a good place to start.
Bintangman, thanks for the information. I will have a look at the link you sent and talk to the others involved in the decision.
Cheers.
Redundancy payments under £30k definitely tax free- and anything over can be stuck into a pension, again untaxed. From personal experience 🙂
Bear in mind that the maximum cost of losing the personal allowance is £1300 or £108 per month, which for someone earning over £100k pa isn't all that much. And yes I do speak from personal experience on that one.
Trimix
I have some info that may be of use to your chap 😀
Can you sned me an email with your contcat details; it's not something that is okay to place on a public forum 8O.
Thanks.