Settlement Agreement vs tax

[Kham]

Hello, I hope this isn't completely off topic, but I’ve been struggling to find answers online and was hoping someone who has been in a similar situation might be able to offer some guidance.

I signed a Settlement Agreement (SA) at the end of last month, with immediate termination, and my employer has promised to pay me the agreed sum by the end of this month. However, part of my final payment will be subject to deductions—such as my bonus and any unpaid resignation period—which will amount to a few months' salary.

Given that the payment is made a month after my employment officially ended, but still subject to statutory deductions, I have a few questions:

1. JSA & Tax-Free Childcare: Am I eligible to claim Jobseeker's Allowance (JSA) and Tax-Free Childcare this month, or do these benefits only start in January after final pay with deductions?
2. Tax Deductions: If I don’t find a new job before the new tax year starts (in April), how do I get back the deductions from my final pay (e.g., taxes or National Insurance)?
3. Healthcare (GP): Am I still eligible to use GP and access healthcare after my employment ends, even though I’ll no longer be employed or do I need to be on JSA for that?
4. Tax Returns: How do I go about doing my own tax returns for the first time? My previous employer handled everything related to taxes, so I’m a bit lost on how to proceed.

Apologies if these questions seem basic—this is the only job I’ve had in the UK (now citizen), and I’m feeling a bit overwhelmed with all what's coming if I don't find a job immediately. I just want to make sure I’m doing everything correctly and legally.

Any advice or direction on where to find the right information would be greatly appreciated. Thanks so much in advance!

[ULA]

1. Were you paid in lieu of notice?.if so you will not be able to claim JSA during that time.

2. You will not get your tax and NI deductions back if you do not find work between now and April. The deductions being made as part of the settlement agreement are those you are liable to pay to HMRC.

3. As a UK citizen you will still be able to access GP services.

4. if you find further employment then your new employer will handle your tax and NI deductions and unless you have other tax affairs eg renting a property or second self-employed job, then you should not need to complete a self assessment.tax return

[Kham]

Thank you, ULA.

I will be paid in lieu of notice. Do you mean that I will not be able to claim JSA until I get the settlement pay or until my notice is up on paper?
The employer promised to pay the settlement amount a month after my departure that includes my 2 months' notice period, bonus and remaining holidays all subject to deductions. My understanding is that if I'm in the 20% basic tax band but I get these paid in one chunk, it will think I'm a high earner for the said month and will deduct as if I'm in the 40 o 45% tax band. In that case, can I claim that extra 20-25% back at the end of tax year as across the tax year I will not be anywhere near those higher bands.

If I don't find employment until new tax year, will I need to submit the paper I presume I'm getting from my former employer once they paid?

[ULA]

JSA can be claimed, as I understand it at the end of your pay in lieu of notice period. So if your notice is 2 months as you set out in your post and this is being paid rather than you working, then you need to add this to your termination date before being eligible for JSA. You can always contact your local Jobcentre Plus to confirm when you should apply. I have linked to how you can find the details of your local centre below:

https://find-your-nearest-jobcentre.....uk/search.php

It will depend on your earnings to date and how much will be processed in your final pay that is subject to tax and NI. Once the final amount has been paid to you and if it has calculated based on a higher earnings threshold ,then I suggest you contact HMRC and they should assist in the process for refunding any over-payment.

On leaving employment you will be provided with a P45 which you can give to your new employer. You should also have access to your own HMRC account via their portal and you can upload some employment information via that. In addition at some point soon after the end of the tax year you should recieve a P60 from this employer.

[Kham]

Thank you so much ULA, this is extremely helpful. Appreciate it!