Hi everyone, does anyone know if you have to pay tax on a severence payment Thanks for any advice
Try this link for help with your question. R Do you have to pay tax on your redundancy pay? - Money Advice Service
If it’s treated the same as redundancy, then not on the first £30K. If, by any chance, it is more than £30K, you may well be overtaxed on the excess, and have to claim it back, as they tax as if you’d received the lump sum AND carried on working next morning, as usual. Ridiculous, when the whole reason you’re getting the payout is because you’ve stopping working!