Impact of redundancy payments on Tax Credits

[YouMightKnowMe]

Hi,

I am expecting to receive a redundancy payment this tax year (but it might be next year - we are lacking clarity on timescales ATM).

Does this count as taxable income for Tax Credits (it will be over the tax free threshold on severance payments).

Does a redundancy payment go on the p60?

Yes it does count as taxable income an should be on your p45/p60.

Will you be getting anything else apart from the redundancy payment? When I was made redundant we got a £1000 "relocation" grant which wasn't taxable and didn't need to declare it.

I will also get my shares which are held in trust but they will be tax free...but will they fall under the other income category where I would put any share dividends (if they ever fall above £270).

So I am not sure what to do when I do my renewal....my current income means we will get tax credits. If I get a redundancy payment late in teh tax year it will put me way over the annual income that I a) declare now and b) that would probably entitle me to tax credits. The I will be screwed and will have ended up with an overpayment....