cobblex

Hi If my annual employment earnings before Redundancy Payment are £95k and I receive a £30k tax free Redundancy Payment: Is my Net Income for calculation of Net Adjusted Income £98k or £128k? And if it is £128k, does that mean I lose my full personal allowance for the year despite the redundancy payment being tax free and it being the reason for putting me into the position of losing my personal allowance? The HMRC page on 'How to work out your adjusted net income' says Step 1 to work out your Net Income by adding up your Taxable Income. The Taxable Income page you click through to makes no mention of redundancy payments that qualify for £30k tax free being included or not included. Ringing HMRC I have been given 3 different answers 1) "Ignore the £30k it as it's not taxable but actually I'm not sure so I'll put you through to another department." 2) "Ignore the £30k as it's not taxable but if it appears on your P60 income then it may count as Net Income thus reducing your personal allowance but I've not come across this before so actually I'm not sure" 3) "It counts as net income even though it's not taxed so you will lose your full personal allowance but actually I'm not sure and am not able to give you written guidance on this as I'm not sure"