How can I reduce my Redundancy tax liability?

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Rigel

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I’m being made redundant in the next couple of weeks and while the lump sum of statutory and employer contribution is reasonable the tax liability is oppressive, I have not received a lump sum redundancy payment in past 10 years and I know I’m going to struggle to find a new job at my age.

My question is what legal ways are there of reducing the tax liability on redundancy lump sums e.g. put it against pension, own business start up, etc? Thanks
 
Rigel said:
I’m being made redundant in the next couple of weeks and while the lump sum of statutory and employer contribution is reasonable the tax liability is oppressive, I have not received a lump sum redundancy payment in past 10 years and I know I’m going to struggle to find a new job at my age.

My question is what legal ways are there of reducing the tax liability on redundancy lump sums e.g. put it against pension, own business start up, etc? Thanks
Click to expand...

You would want to give more details of redundancy package, how much is package, what part of it is statutory, how many years are you their, is their any break in service etc

How calulated tax element for you and how much is due?

Have you ever being made edunandt before?
 
Thanks for the reply; the follow numbers are approximate until I see my final details.
How much is package: 125k
What part of it is statutory: 19k
How many years are you their: 15
Is their any break in service etc: No
Who calculated tax element for you: Employer
How much (tax) is due: 37k
Have you ever being made redundant before: No
 
Yes top slicing applies but I’m looking for ways to increase the initial lump sum payment and put it to work now rather than having to wait a year for top slicing.
 
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