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Does anyone know about tax on redundancy payments?

2 replies

lalalonglegs · 07/01/2008 19:35

I got made redundant in 2006 and got a very nice payout and was told the appropriate part would be taxed at basic rate. I have just sent my accountant my records for 2006-7 and she says that although I was taxed at basic rate at the time, the amount I was paid brought me into higher tax band and I now owe £3200 by end of month.

I am - honestly thought I would get rebate. Please tell me she is mistaken...

OP posts:
Iota · 07/01/2008 19:39

The first £30 K is tax free, then you are taxed at the appropriate rate - did your earnings in the same tax year plus the taxable portion of your payout put you into higher rate tax?

lalalonglegs · 08/01/2008 09:51

Just the news I didn't want but thanks for letting me know.

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