Redundancy Procedure – enhance your knowledge with these tips: Q13

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Question 13: How can redundancy settlements be made as tax efficient as possible?

Answer:

• £30,000 of redundancy is tax free
• Over £30,000 is taxed at employee’s highest rate
• If still employed, full PAYE deductions will be made on settlements over £30,000
• If employee has already left, 20% will be deducted initially resulting in a temporary cash flow benefit for up to 12 months

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