How much redundancy will i get

L

ludermor

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We are about to be offered voluntary redundancy and i am trying to work out what i will get after tax.
We are going to be offered 4 weeks per year ( which i assume to be gross?) so 4 weeks gross amounts to 5,384.
I started employment in Jan 03 so i am into my eight year ( 7 full years). Do i get 7 or 8 years? ( x 7 = 37,688, x 8 = 43,072)
From the citizens info site i see there is a basic excemption for the first 10,160 and then 765 for each year so i would have 10,160 + (765*8) = 16,280 tax free
It then states there is Increased Excemption of 10,000 in the following circumstances
If you haven't received a tax-free lump sum in the last 10 years
If you have never received a tax-free lump sum and you are not getting a lump sum pension payment
So can i take it that this will be added to my tax free amount giving me 26,280??
So say i am entitled to 8 years this would give me tax free of 26,280 and taxed amount of (43,072-26280)= 16,792 which would be taxed at an average of the last 3 years ( say 35%?? without looking at my P60 i would say it is near that) so tax paid of 16,792x35=5877.20
So total payment would be 43,072-5,877.20= 37,194

Can someone tell if i have read it right or wrong
 
In relation to the 7 or 8 years, that is dependent on the terms of the scheme since it is outside the statutory redundancy scheme. In the case of my own employer, in such a situation we would have paid the last year pro-rata depending on how much of it you worked. In other words, if you worked for 7 years 6 months, you would get 7*4 =28 weeks + 2 weeks for the 6 months worked, but some companies may do it differently

secondly you should check to see if the 4 weeks includes or excludes statutory redundancy.

Thirdly you should check that there is no cap as to the maximum amount you can receive under your employers schemee
 
Thanks for the quick replies!!
We havent been given the terms just yet so until then i will be a bit in the dark.
There will be a cap of 13 years ( so 52 weeks) so i will be under that.
Im not sure about the statutory but the word is it excludes it.
The main thing in my calculation i was wondering about is the entitlment of the second 10,000 increased excemption, is there any reason why i wouldnt be entitled to it?

Plek
The redundancy website only calculates the statutory redundancy unless i am missing something?
 
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