Ducati Sporting Club UK > General > Idle Chat > compromise agreements (redundancy)

[philthy]

Originally posted by final_edition

Redundancy is tax free upto £30k

Mark may have a contract which states that either party has to give three months notice of termination of contract ( i.e. if mark found another job he would have to work three months notice )

If the employer wishes to terminate the contract he can either let you work your notice, or say to you 'You can go home now and we will pay you your wages in advance for the three months, but you don't need to come into work '

Therefore this amount will be classed as wages and be taxable. ( I think )

Redundancy pay will be any payments in addition to this e.g. The equivalent of one weeks wages for every year of service.

Depending on your circumstances you may also be entitled to a tax rebate at a later date.

The above implies no knowledge of any employment law or tax issue and if anyone wants to sue me if it's wrong then don't bother cos all my money is in a tin box buried under a rock on a mountain in Wales. It's a big pointy one with grass at the bottom,trees in the middle and rocky bits at the top.

Phil