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redundancy help needed


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I am being made redundant and am being given 1 months payment in lew of notice however I have been informed that I will be taxed on this payment. Can somone please confirm that this is correct?

 

Also, I wish to contest the redundancy on the grounds that they have not used the correct proceedure. Can anyone recommend where I can obtain good free advice? I have kept all correspondance and could do with it being reviewed to confirm if I have a case.

 

Many thanks.

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Redundancy payments up to £30K are tax free. Join a Union and they will help you big time. How long have you been with the employer as if it's less that 2 years then sorry, no redundancy. Also were you actually being employed by the company you worked for i.e. you were not a contractor etc.

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The PILON can also be paid tax-free as it is damages for breach of contract rather than pay,

 

If it is not paid tax-free, then the tax can be reclaimed from HMRC later.

 

Pay to final work date and holiday pay will be taxable.

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