Redundancy Tax Calculation

[richard.hodgson]

Hi, can anyone point in the direction of someone who can help with my termination/redundancy calculation.

The situation,

I have been employed for fours years, my company is moving me to indirect outsourced on a 12 month contract as they want to retain my services, my day rate will be £450 per day and I will run this through my own limited company.

My current salary is £80,000 + a 20% bonus + £6,700 per annum car allowance.

My payment is £25,423.10 for my notice period of three months where I believe I will pay tax, I will also receive a payment of £4,250 for bonus again taxable, I am tryng to work out how much of this £29,673.10 I will actually see, then I will get a payment of £21,250 compensation which I presume is tax free, any experts on here that know how to work this calculation out?

I will also need an accountant to help me with limited accounts if anyone knows anyone good?

Thanks in advance

Richard

[matt3942]

Re: Redundancy Tax Calculation

Hi Richard,

If payment is payment in lieu of notice it will be taxed the same as your normal income. If it is a redundancy payment you are entitled to up to £30,000 tax free.

My advice is to find an accountant local to you.

[richard.hodgson]

Re: Redundancy Tax Calculation

Thanks Matt