I'm being made redundant next year. Am I likely to get any tax back from the Inland Revenue?

Question

Is it better to leave before the end of the current tax year to get max rebate?

Answer 1

Forget the tax consequences. Will staying give you more money in your pocket? Tax is, at most, 40% of any transaction.

Answer 2

Your redundancy is tax free up to £30K, you can usually put anything above this into your pension. You may be able to take the money over the next couple of years to reduce tax liability too - if the company offers this as an option.

You will get a rebate based on your tax code at time of leaving - tax paid and whether you have any further income in that year.

Complete Form P50 and send with your P45 to your local tax office - you can download this from the Inland Revenues website.

http://www.hmrc.gov.uk/sa/forms/content.htm

Answer 3

It probably depends on your tax code and whether you return to work in the same tax year.

We're now about seven months into the tax year so you will have had seven twelths of your personal allowance. If you had no more income this year then you would get a repayment.

I don't think you should allow this tax consideration to affect your timing at all if you have the choice

Answer 4

Well; yeah - the earlier you leave the more tax back you will get. But you would earn much less money. So consider tax back a perk if the timing's right. But stay working as long as you can.

Answer 5

phone acas if you live in the UK, they are very helpful and youo don't have to wait long on the phone before you get through to speak to someone.

http://www.acas.co.uk

Answer 6

my condolences