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Workers fired on the spot could lose a fifth of their redundancy payout to the taxman under new rule
Workers fired on the spot could lose a fifth of their redundancy payout to the taxman under new rule
This is a duplicate of the Blog Entry made on: 7th December 2016 16:08
This is a duplicate of the Blog Entry made on: 7th December 2016 16:08
....hidden in the Autumn Statement
Workers who are fired on the spot could lose nearly a fifth of their redundancy payout to the taxman under new rules buried in last month's Autumn statement. Currently, employees do not have to pay income tax or national insurance if their redundancy pay is under £30,000. But from 2018 workers who receive a bigger payout because they've been given no warning that their job is being cut — payment in lieu of notice — will have to pay income tax and national insurance on this award. A basic rate taxpayer given £10,000 after losing their job — a £5,000 standard payout and £5,000 in lieu of notice — will lose £1,600 to the taxman under the changes, according to figures by accountancy firm Deloitte......Read more here
Workers who are fired on the spot could lose nearly a fifth of their redundancy payout to the taxman under new rules buried in last month's Autumn statement. Currently, employees do not have to pay income tax or national insurance if their redundancy pay is under £30,000. But from 2018 workers who receive a bigger payout because they've been given no warning that their job is being cut — payment in lieu of notice — will have to pay income tax and national insurance on this award. A basic rate taxpayer given £10,000 after losing their job — a £5,000 standard payout and £5,000 in lieu of notice — will lose £1,600 to the taxman under the changes, according to figures by accountancy firm Deloitte......Read more here