Redundancy

[baldrick]

Do you pay tax or NI on redundancy money?

You don't pay tax on up to £30k. Not sure about NI but I think NI is only paid on wages.

Just looked up the last termination offer sent to me, it says:
6.2 Where the Termination Payment is less than £30,000 - The Termination Payment will
be free of tax in accordance with section 403 Income Tax (Earnings and Pensions) Act 2003. The
first £30,000 of the Termination Payment will be paid out without deduction of tax or national
insurance contributions in accordance with section 403 Income Tax (Earnings and Pensions)
Act 2003. Where the Termination Payment exceeds £30,000 - the balance over £30,000
will be paid after deduction of tax as required by law. You will be responsible for accounting
to the HM Revenue & Customs for any balance of tax due.

[Indy]

Do you pay tax or NI on redundancy money?

You don't pay tax on up to £30k. Not sure about NI but I think NI is only paid on wages.

Just looked up the last termination offer sent to me, it says:
6.2 Where the Termination Payment is less than £30,000 - The Termination Payment will
be free of tax in accordance with section 403 Income Tax (Earnings and Pensions) Act 2003. The
first £30,000 of the Termination Payment will be paid out without deduction of tax or national
insurance contributions in accordance with section 403 Income Tax (Earnings and Pensions)
Act 2003. Where the Termination Payment exceeds £30,000 - the balance over £30,000
will be paid after deduction of tax as required by law. You will be responsible for accounting
to the HM Revenue & Customs for any balance of tax due.

It would appear that these days RM would rather find reasons to sack people rather than pay them off :(

[Darren Bent]

So this means 26 weeks plus 5 years (How long I been there) and then money for Colleague-shares and only pay tax and national insurance on shares.