Redundancy-How much Tax free? Employment Specialists Please.

[Whoooosh]

Looks like I am faced with redundancy after 10yrs and need some advice.

Does anyone know how much of my severance can be lassed as tax free?

Anything else I should consider?

My somewhat out of date tax knowledge remembers up to £30,000 being tax free, but I will bow to anyone else's superior knowledge.

When I was in HR it was the first £30,000 tax free, but I last worked 3 years ago so may have changed.
Also I can't remember all the details, but I am sure that if you want to you can put a lump sum into a pension scheme and that can be tax free as well, but I wouldn't like to swear by that!

My recollection was £30k-was hoping it had gone up-then again,I may well not get anywhere near that but can live in hope.

My pension is worth sweet FA anyway but worht knowing that fact.

Thank you both for responding.

Any other tips people?

£30,000 is classed as tax-free. does your firm provide an outplacement service? if not you could ask for one.

btw - am not a lawyer - was made redundant last year - a good outcome for me!

do you have any specific questions?

my first piece of advice is don't panic.

you will get a 30 day "consultation period" and then your notice period before termination - so you will have some time to plan.

if you want to find another job, get your CV up to date pronto and get looking. you will need to have a good "exit statement" ready for interviews when they ask you why you left your last job.

make a budget to see how long you will be able to last w/o working. make some financial contingency plans in the event you can't find another job after x months.

this is all assuming you wan't/need to find another job quickly which may not be the case.

hth and good luck.

it was still 30k last yr!

Thanks BossyKate-am hoping it could be the best thing for me and am "engineering" it in a way-just want to get the most I can so I can be a SAHM for as long as possible.

haha! i "engineered" mine too! it was a scary business as i do need to work, but came out ok in the end

hope it comes off for you.

i would still go for the outplacement if they offer it. you could look at strategies for how to manage the transition, how to protect yourself (cv) if you want to return to the workplace after a break sah etc etc. could still be worth doing.

Sound advicer-reckon they would offer outplacement-which would be very useful.COuld do with brushing up my non-existant (other than MN) pc skills.

It IS still £30K, but only if its not written in your contract that you're entitled to it. If its in your contract, its taxable.

Also, don't work your notice, because it becomes taxable then too!

Yes, £30k tax free provided it is not contractual. The key is that it is not remuneration for services.

Thanks for all the advice-haven't had a revised contract (despite several promotions) over 10 yrs and am pretty sure it isn't in there.

Not planning on working my notice-any other "tricks" I should know about?

unashamedly bumping for the evening crowd...

HAve been off sick for a while and offered mysle fup for voluntary redundancy.
Work no wwant to involve their insurance co to see if "I" can benefit from it.
Fairly sure it si to reduce their liability but anyone have any experience?