Ask for a tax-free golden handshake if you're made redundant
Q:
If you're made redundant, your employer may suggest that you continue working for a time in the hope that you'll find another job before you leave.
A:
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.
There are currently no comments on this post.
Advertisement
Recommendations
Top 10 Life Funds, 1yr%
| JPMLAL D&A 30 YEA... | +37.3 | ||
| ZURICH INVESCO BO... | +26.7 | ||
| AXA MLC INVESCO P... | +25.2 | ||
| ZURICH GLOBAL BON... | +24.9 | ||
| UBS LIFE OVERSEAS... | +24.5 | ||
| PHOENIX WORLDWIDE... | +22.7 | ||
| CLER MED MANAGED ... | +22.6 | ||
| ZURICH GLOBAL BON... | +22.2 | ||
| ZURICH STG GLOBAL... | +21.8 | ||
| SCOT EQ FOREIGN B... | +20.0 | ||
Top 10 Pension Fds, 1yr%
| BAILLIE GIFF OVER... | +26.2 | ||
| SWIP PM OVERSEAS ... | +25.7 | ||
| THREADNEEDLE GLOB... | +25.5 | ||
| INVESCO L&G OVERS... | +24.7 | ||
| L & G OVERSEAS BO... | +24.7 | ||
| ZURICH GLOBAL BOND ZP | +24.6 | ||
| SSGA MPF OVERSEAS... | +24.5 | ||
| SKANDIA GARTMORE ... | +24.4 | ||
| AXA INST OVERSEAS... | +24.2 | ||
| ROYAL LONDON PP O... | +24.0 | ||
Top 10 Inv Trusts, 3yr%
| F&C Private Equit... | +273.2 | ||
| BlackRock Latin A... | +232.3 | ||
| Ecofin Water & Po... | +196.8 | ||
| European Utilitie... | +156.2 | ||
| Lazard Egypt Trust | +150.7 | ||
| Asset Management ... | +126.5 | ||
| SVM UK Emerging Fund | +121.0 | ||
| JPMorgan Russian ... | +117.7 | ||
| BlackRock World M... | +97.7 | ||
| Close Enhanced Co... | +92.2 | ||
Top 10 Unit Trusts, 1yr%
| MFM ETF COMMODTY A | +39.6 | ||
| INVESTEC EMG MKTS... | +33.6 | ||
| THREADNEEDLE TARG... | +30.4 | ||
| SCOT WID OVERSEAS... | +24.2 | ||
| M&G INTL SOVEREIG... | +23.6 | ||
| INVESTEC GLOBAL B... | +23.4 | ||
| SG INTERNATIONAL ... | +23.3 | ||
| HENDERSON OVERSEA... | +23.1 | ||
| STAN LIFE INV OSE... | +23.0 | ||
| CF LORD ABBETT LT... | +23.0 | ||


Change: