severance pay

Jan 15, 2004 3 Replies
B

my company and i are parting company and i am being paid severance pay,what are the tax implications for this,i am on paye,i have heard it is tax free up to



30k,is this so,if not what can i do ?,many thx in advance,
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G

Bitstring , from the wonderful person BRAMSCAPE said

Normally yes, unless the company does something dumb in how it describes it to the IR.

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H

If by severance you mean 'redundancy' then the first 30K is tax free.

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J

Yes, provided there isn't anything in your contract of employment that says you are entitled to it.

Statutory redundancy pay is always tax free.

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