What if i do not receive the redundancy payment immediately?Jack - redundancy from different employers in two successive jobs. Tax on job seekers' allowance. We cannot make other payments such as unpaid wages, holiday pay or compensation for not receiving proper notice. Those with pensions might find that redundancy can make their finances quite complex. Because it is pay, income tax and national insurance are deducted.

This also applies to statutory redundancy payments. If you disagree with your employer about your entitlement to a redundancy payment, you can take the matter to an employment tribunal. You or your employer can find out more about this from your tax office. If you disagree with your employer about your entitlement to a redundancy payment, you can take the matter to an employment tribunal. However, the first £30, 000 will remain tax- free. Do i pay tax on my notice pay?

Sally - payment by instalments in two tax years. If instead the redundancy payment of £55, 000 was not actually paid to tom until 1 august 2006, his employer would have to take 22% tax off before paying tom the balance. From this amount we have to deduct an amount equivalent to income tax, and state benefits.

Levels and bases of, and reliefs from taxation are subject to change. The entire £12, 000 payable on 1 march 2008 will also be chargeable to tax for 2007/08. Nic is not payable on redundancy payments but if it is part of a package some of the other amounts in the package may be taxable.

In that case only the excess above £30, 000 is liable to income tax icta 1988, s. 188 4. This will enhance your pension and help you avoid paying tax on those payments above £30, 000! Speak to your mortgage company/creditors if you feel that you have difficulty meeting the payments. But any excess over £30, 000 is fully taxable.

Your employer is obliged to pay the redundancy unless they can offer you 13 weeks' work within 4 weeks. Claim for payments from the national insurance fund form rp1 can be found in the guide. Tax repayment. Further information is available in the document redundancy redundancy entitlement - statutory rights. You can in some situations request a holiday period or temporary reduction in monthly payments.

The first £30, 000 of such a payment are usually exempt of tax. What if you get goods instead of money or if the payment is delayed? Martin will be taxed on the remaining £5, 000 during 2007/08. See section offsetting pensions against redundancy payments. Payments in lieu of notice. Charcoal tablets. A statutory redundancy payment will have no effect on any entitlement you may have to contribution- based jobseeker's allowance.

The redundancy payments office can give more information. Remember, we have to take income tax and national insurance from this amount. You should claim your redundancy pay in writing from your employer or make a complaint to an employment tribunal within 6 months of your employment ending.

Kevin - payment in excess of exempt £30, 000 limit – instalments in same years. Mortgage refinancing. Remember that the payment is restricted to, either the amount you are owed, or the limit of £280 per week, whichever is lower. The different categories of payment. Mortgage payment calculator. When will my redundancy payment become due? This means that the remaining £8, 000 of the may 2007 payment £19, 000- 11, 000 will be charged to tax as earnings in 2007/08. What if i get goods instead of cash as my redundancy payment? Steve wright's radio 2 web site of the day: "an excellent resource offering extensive help, advice, tips and contacts for people who are affected by redundancy.