Posted by Flora Maudsley-Barton | January 22, 2010
Redundancy Double Whammy
If you’re unlucky/lucky enough to be facing redundancy soon, with a big severance payment, you might well be expecting your money on 31 March? It seems to be a popular date.
Take great care in advance if you’ve got any tax planning in mind: The last day of the tax year is 1 April this year (because of the Easter bank holidays).
This could make a huge difference if you’re facing 40% tax on severance pay. It’s quite easy to do that because your redundancy sits on top of a whole year’s income, especially if you don’t expect to pay 40% tax in the new tax year.
The Financial Services Authority does not regulate Tax advice
Plan carefully. Take advice if you need it.