Ask for a tax-free golden handshake if you're made redundant
22 June 2006
But if you leave straight away with a golden handshake as compensation for loss of office, you and your employer gain financially.
You pay no income tax or National Insurance Contributions on the first £30,000 of your redundancy pay. There are two exceptions to this rule:
If your employment contract gives you an automatic right to the payment, you lose the tax and NI exemptions.
If the redundancy agreement with your employer includes a clause preventing you from setting up a rival business, again you lose the benefits.
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