Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[unlucky mark mv6]

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.

[tunnie]

if my work offered that i would be off like a shot!! but then again i am 24 and only been here 2 years  

[Mr Hagon]

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.

[TheBoy]

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.  

[jonathanh]

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

[pscocoa]

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.

[jonathanh]

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