redundancy payment questions

[sleep envy]

Mrs Envy had her second interview today and she asked the money question - if she were to be made redundant what would her final salary payment be?

she was told;

- 6 weeks notice, taxed at the normal rate
- 1 week holiday in lieu, taxed at the normal rate
- loss of benefit, taxed at the normal rate
- 6 weeks pay (1 week for every year of service) capped at £330/week, taxed at the normal rate

having heard the above, quite frankly, I think their accountant needs tinning rather than the mrs, AFAIK the above would be all tax free?

does anyone have any conclusive evidence that I can send her into work with?

cheers

[JamieBeeston]

Gov Website said:

Do I pay tax on my notice pay?

Tax may not be deducted from your notice pay in some circumstances; it is advisable to contact your local tax office for clarification.

http://www.berr.gov.uk/whatwedo/employment/redundancy/redundancy-faq/page12594.html

Given that, it would imply that typically you do pay tax on your notice period, but there may be ways around it for some people.

The redundancy payment itself will be tax free (assuming under £30k)

GL

[Eric Mc]

JamieBeeston said:

Gov Website said:

Do I pay tax on my notice pay?

Tax may not be deducted from your notice pay in some circumstances; it is advisable to contact your local tax office for clarification.

http://www.berr.gov.uk/whatwedo/employment/redundancy/redundancy-faq/page12594.html

Given that, it would imply that typically you do pay tax on your notice period, but there may be ways around it for some people.

The redundancy payment itself will be tax free (assuming under £30k)

GL

Only if it is "ex-gratia" and not in respect of previous services rendered.

[M400 NBL]

That does seem correct.Employers reputation means little these days. Survival is more important, which is why most only pay out £330 for each service year rather than a weeks salary.

Check out www.acas.org.uk

[edc]

M400 NBL said:

That does seem correct.Employers reputation means little these days. Survival is more important, which is why most only pay out £330 for each service year rather than a weeks salary.

Check out www.acas.org.uk

That is the statutory requirement (actually up to a max of £330 a week). Anything else is either an 'enhancement' or will be provided for by contract.