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Posted Fri, 26 May 2023 14:54:07 GMT by Athique Ahmed
Hi, Hope someone can help clear this up. I have the following redundancy payment being made to me on 15 March 2024 as I have a deferred redundancy date. Payment Illustration • Pay in lieu of Notice at 3 Months: £16,068.00 • Statutory Redundancy: £9,428.88 • Ex-Gratia payment: (additional 2 months plus, benefits cash equivalent if applicable, LOS award if applicable) £10,712.00 • Total Payment: £36,208.88 • Any annual leave you have accrued but have not taken at the date of termination of employment will be added to your final pay. I understand that the Statutory and Ex-Gratia payments are made free of deductions up to £30,000. My question is for the pay in lieu of notice with an amount of £16,068...I believe this is subject to Tax and NI but I'm unsure how to calculate exactly how much lower this sum will be with TAX and NI taken off. Hope someone can help...thanks!
Posted Wed, 31 May 2023 08:00:41 GMT by HMRC Admin 25
Hi Athique Ahmed,
You will also need to take into account any income earned up to that date so that you know your total income.
You can use the calcuator from the attached link as guidance to help work out the tax: 
Thank you. 


 

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