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Posted Mon, 11 Mar 2024 01:40:48 GMT by CuriousTaxPayer
Hello HMRC Community, I understand that the first £30K of a redundancy package is tax-free. Three questions: 1) Is it exempt from NI as well or just exempt from the income tax? 2) Does it count towards the total income for the year? (e.g., if I were to receive £30K redundancy pay + £80K from other sources, would my net adjusted income be £110K or just £80K?) 3) I assume that any excess above £30K is treated as normal income? (i.e. subject to income tax, NI and counting towards income for a given tax year) Thank you for your help!
Posted Fri, 15 Mar 2024 11:18:16 GMT by HMRC Admin 19 Response
Hi,
  1. For advice on National Insurance (NI) you will need to contact our NI team. National Insurance: general enquiries
  2. If non taxable it will not count towards adjusted net income.
  3. Yes, the taxable element will be taxed as normal. 
Thank you.
Posted Sat, 16 Mar 2024 11:27:57 GMT by CuriousTaxPayer
Thank you

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