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Posted Fri, 06 Dec 2024 12:25:24 GMT by anniewalker74 Fidler
I am being made redundant at the end of April. I will receive a generous company severance payment. I know £30k of this is tax free but as I do not plan to work within the next financial year how does the tax allowance work. Trying to determine if best to put money into work pension scheme or bank account depending on what I will be taxed. Thanks for any advice
Posted Thu, 12 Dec 2024 11:52:41 GMT by HMRC Admin 20 Response
Hi,
The payment will be taxed as normal in your April salary.
If not working then you may be due a refund based on this being your annual income.
Claim back Income Tax when you've stopped working (P50)
Thank you.

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