Dicko&Vacant

iTrader: (3)

im getting laid off end of january, and im also on maternity leave until june, as an employee of the nhs im getting a redundancy payment of 1mths pay for every year of service, which is 5.34 years from their reckoning, plus my maternity pay til i am due to return from work?

What i want to know if anyone knows is will i be taxed on the full amount? been looking on the internet and the jobcentre says the basic redundancy payment is 1wk for every YEAR of service so does that mean im gonna get taxed for the other 15wks pay im receiving? As also found on the inland revenue that you dont get taxed on any payment upto £30,000 ? cant seem to find any specific information as to what tax i will pay?

ill end up with nothing left if they tax me on the full 5mths pay

Adrian

Didnt think redundancy pay was taxable.

Dont think I was taxed when I was made redundant 9 years ago.

Mine was over basic requirement too.

Dicko&Vacant

iTrader: (3)

well i know that statutory redundancy pay isnt taxable, but as im getting more than statutory ( but less than £30k) im not sure if its taxable or not, as nowhere can give me a straight answer

my tax code has gone right down with me being on the sick before maternity leave and a bit worried as theyd prob take over 1/3rd of my payout off in tax

St3V3_C

I was made redundant about 18months ago.

A bit ( ) over statatory pay, and all not taxable.

HTH

gurnE

Less than 30k and you're fine

gurnE

Info here

Dicko&Vacant

iTrader: (3)

ok cheers, was a bit worried as using the money towards our wedding



on that page though it says " bonus payments"

does my extra non statutory pay not count as that?

gurnE

I'm no tax expert but I'm pretty sure that's referring to unpaid bonus that you would have been paid normally.

E.G. about 1/3 of my wage packet is 'bonus'

It just means any unpaid remuneration you are due is taxed as per normal.

The fact that your redundancy payment is above the statutory minimum should not affect the tax liability of the payment provided it stays below 30k AFAIK.

Iain Mac

The redundancy element of your pay-off will be tax free but I'd expect them to only pay for completed years of service - with such a big enhancement over statutory minimum I wouldn't make much more than a token protest if they do say that you only get 5 months pay + maternity.

You will almost certainly have to pay tax on the maternity element as that will just be classed as earnings, in much the same way as pay in lieu of notice would be taxed.

Maybe you can persuade your employer to make the maternity pay a "Termination of Contract" payment instead, which should then make it tax-free - you would probably have to sign a settlement letter agreeing that you are accepting this as full and final payment, but that's OK.

Dicko&Vacant

iTrader: (3)

tbh im more than happy with being paid maternity pay when im not employed by them anyway, ill be taxed and nat insuranced on it til it finishes, BUT it also means im still able to claim WFTC and CTC until i stop receiving both, whereas if they paid me my maternity in 1 lump payment id have to claim income support which is a considerable amount less than im getting at the moment.
Im getting a lot more than the statutory for my redundancy so definitely not complaining about that part anyway, was just unsure of how i stood tax wise.

Its pretty hard getting the NHS to do anything other than by the books so i wont risk asking them

Matt J Statutory is 1 wk for every year of service, im getting 5mths pay at my average salary worked out from the full length of my service, which includes overtime and shift allowance, so not too bad a deal at all

no1girlracer

I was made redundant in July of last year, Redundancy payment is not Taxable.

Jim S

Hi Sarah

The last time I got laid off the rules were: redundancy payment up to 30k was tax free but if any of your notice period is in that payment then it will be taxable, you need to check the wording in your letter from the NHS.

I would think the maternity pay would be taxed.

You are right about the minimum being 1 week for every year up to a maximum weekly wage (not sure what it is now) but a company can pay almost any amount they want if they are feeling generous.

See you on Sunday.

Jim