Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: mantahatch on 19 May 2009, 10:18:56
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Where I work is offering voluntary redundancy. They are offering 1 years salary for those under 60 and reducing by 1/5th for those 61, 62 etc.
I am 44 in good general health and was wondering whether to go for it.
Is tax and NI payable on redundancy money ? I understand now is not a good time to be looking for work but wondered if it would be better to take the money while it is availble.
Thanks in advance.
Mike
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What do you do Mike?
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Thats one hell of a package, they must be worried and NEED people to go....
redundancy is meant to be tax free to a certain level, not sure what that is though.
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Thats one hell of a package, they must be worried and NEED people to go....
redundancy is meant to be tax free to a certain level, not sure what that is though.
There are lots of things to take into account. We cant really advise you withouit knowing your circumstances.
You wont get any benefits while out of work so you'll have to live on your redundancy money.
Is your missus working.
How likely is it you will get another job quickly
If you dont take it now, will you be forced to settle for less later.
If you are in a union, they will take a dim view of it and may even object to you working in places that are unionised later
etc. etc.....
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30K is the tax free ceiling (dependent on how the company handles it).
Consider also that if its voluntary that any mortgage/loan payment protection schemes will not pay out.
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Thats one hell of a package, they must be worried and NEED people to go....
redundancy is meant to be tax free to a certain level, not sure what that is though.
There are lots of things to take into account. We cant really advise you withouit knowing your circumstances.
You wont get any benefits while out of work so you'll have to live on your redundancy money.
Is your missus working.
How likely is it you will get another job quickly
If you dont take it now, will you be forced to settle for less later.
If you are in a union, they will take a dim view of it and may even object to you working in places that are unionised later
etc. etc.....
important questions..
Even regarding most of the consequences, there are two critical facts which are serious..
First when you stop working and start spending your time mostly in home you will start to loose from your health ..
Second depression .. ( been there done that)
so my opinion is absolutely "No"..
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I work in the higher education system, but in a section which is virtually all for commercial clients. As I take the bookings for using our facility I am only to aware of how much work we have in the future (not much past July).
In the past: I am a fully qualified bricklayer (building industry not good) Then I worked for a major breakdown organisation on the road doing breakdowns. Then moved into the office side of the organisation. Then took a job here, can't say to much as signed official secrets act, and many confidentiality agreements.
Chances of getting another job on my current salary are pretty slim. Most jobs being offered round here are 12k to 20k max and the 20k jobs seem to require a degree which I don't have.
Mike
Wife works part time about 10k per year
mortgage £250 month
I am not in a Union allthough there is a Union here
I hope there will not be any forced redundancies but you just never no
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How does outstanding mortgage compare to redundancy payment?
Would it clear it?
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How does outstanding mortgage compare to redundancy payment?
Would it clear it?
I have an endowment mortgage policy maturing in 2011 ,the redundancy payment would not clear the mortgage now.
Mike
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TBH the real question is: How long can you survive without working, living on the redundancy payment alone, at your current standard of living?
There is normally space to get back into the Breakdown/Roadside Repair market if it came to it but...... Not sure I would go voluntarily :-/ :-/
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How does outstanding mortgage compare to redundancy payment?
Would it clear it?
I have an endowment mortgage policy maturing in 2011 ,the redundancy payment would not clear the mortgage now.
Mike
And that may well fall short too
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Nah your not entitled to anything no JSA no Tax Credits no mortgage payment protection no council tax benefit nothing in the current financial climate id stay put
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How does outstanding mortgage compare to redundancy payment?
Would it clear it?
I have an endowment mortgage policy maturing in 2011 ,the redundancy payment would not clear the mortgage now.
Mike
Try for another job then take it - do not leave without one to go to.
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Sorry to hear about this Mike, the company I work for is undergoing a similar thing at the moment. We offered voluntary redundancy but they were only able to offer the government minmum redundancy pay so nobody took it, so they've now made 5 staff redundant which just about leaves us with the bare bones to operate. If we don't get some decent orders in in the next few months I think we're a gonna. :-/
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I have to say I am tempted to stay put and try to ride it out. That said we have the Transit factory and the Docks are on our doorstep, and numerous people have walked away from those places in the past with redundancy and seem to be better off as a result.
I just wonder if it is any different today as it was for these people when made redundant in the 70s and 80s. Perhaps I am living to much in the old days.
At least I now have some empathy with those who have gone, or are going through it.
Sad times.
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Iwould stay put mate, ive been out of work nearly 2 years now,and i am multi skilled plumber,and cant even get an interview,so a job right now is like a lottery win to some folks. :y
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if my work offered that i would be off like a shot!! but then again i am 24 and only been here 2 years ;D
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30K is the tax free ceiling (dependent on how the company handles it).
I also remember reading that if your redundancy payment exceeds that threshold you could have it paid into a pension to reduce the taxation on it.
Probably worth checking with a financial advisor to be sure.
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Where I work is offering voluntary redundancy. They are offering 1 years salary for those under 60 and reducing by 1/5th for those 61, 62 etc.
I am 44 in good general health and was wondering whether to go for it.
Is tax and NI payable on redundancy money ? I understand now is not a good time to be looking for work but wondered if it would be better to take the money while it is availble.
Thanks in advance.
Mike
Generally, £30k is tax free.
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agreed £30k is generally tax free.
Some employers will divert additional money above the £30k into a pension scheme but this is tax deferral rather than anything else: you'll pay tax on it when you draw it and you'll have to lock it away for 16 years or more (unless you retire early)
You say you work in higher education. check your pension scheme rules. If you are in a public sector scheme (USS, Teachers Pension Scheme, local government penison scheme or in a private sector final salary scheme, there may be special rules that apply to you). don't get your hopes up as most of the great deals have withered because of cost (unless you are a civil servant...)
also there may be a better deal for compulsory severance than for voluntary severance - worth reading around
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My wife's company made her redundant a few days ago but they have made some mistakes in the process. I have represented people before in this type of stuff and so we have appealed. Will let you know how we go on.
Unfair selection for redundancy is a very difficult area - if the employer does not take objective view then selection can be deemed unfair. The thing is - if as a manager you are not trained on this sort of stuff and HR take their eye of the ball then you can easily make big errors.
We have appealed, sent a without prejuduce letter re possible settltement and will be whacking in a grievance or two not dealt with previously. She has been there 15 years.
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My wife's company made her redundant a few days ago but they have made some mistakes in the process. I have represented people before in this type of stuff and so we have appealed. Will let you know how we go on.
Unfair selection for redundancy is a very difficult area - if the employer does not take objective view then selection can be deemed unfair. The thing is - if as a manager you are not trained on this sort of stuff and HR take their eye of the ball then you can easily make big errors.
We have appealed, sent a without prejuduce letter re possible settltement and will be whacking in a grievance or two not dealt with previously. She has been there 15 years.
and by and large HR people don't understand pension either so even HR get that bit wrong. Redundancy is hideously complex to say the least. particularly if your employment transfered from another employer under TUPE (Transfer of employment legislation). Compulsory redundancy is tied up in forma consultation under trade union and labour relations act as well