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[mantahatch]

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

[STMO123]

What do you do Mike?

[Jimbob]

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.

[STMO123]

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.....

[Marks DTM Calib]

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.

[cem_devecioglu]

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"..

[mantahatch]

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

[Martin_1962]

How does outstanding mortgage compare to redundancy payment?

Would it clear it?

[mantahatch]

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

[Lazydocker]

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 :-/ :-/

[Lazydocker]

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

[tmx]

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

[Martin_1962]

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.

[bob.dent]

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. :-/

[mantahatch]

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.