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Tax free redundancy payment and income

Answer
Kathy Hodder
Posted Fri, 08 Nov 2024 09:19:31 GMT by Kathy Hodder
The first £30k of a redundancy payment is tax free. However, I am not sure whether it counts as income when calculating total annual income for tax purposes. Please could HMRC clarify. Thanks
Answer
HMRC Admin 34 Response
Posted Tue, 12 Nov 2024 16:06:48 GMT by HMRC Admin 34 Response
Hi,
You would not include the tax free portion to calculate the adjusted net income.
Personal Allowances: adjusted net income
Thank you

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