Originally Posted by
CaptainSensible
When I took redundancy from BT in 1992 the tax free element allowed then was £30,000. Today after taking into account inflation that figure should be nearer £52,000. Fiscal drag I think they call it.
For those suitable motivated must be worth a question to their local tax office and or MP.
Also understand that during the bmibaby and Monarch redundancy processes , pay in lieu of notice, PILON, was paid tax free.
The only element of a redundancy package that is tax free is the 1st. 30k.of Redundancy Payment. PILON, backpay, holiday pay are taxed, but can be reclaimed if not employed via your tax return. Just been through it with Cooks.