Tax advantage of date of redundancy

[chasie]

Hi All
In the case of a person being made redundant in current tax year(end December) is there a tax advantage in pushing the redundancy date to say end January
There are no immediate job prospects in tax year 2010

Thanks

 

[Brendan Burgess]

An interesting question which is not asked very often.

I have written a piece on it here

[broken link removed]

Brendan

 

[Squonk]

In terms of taxation on any ex-gratia payment, the relief takes into account FULL completed years of service (i.e. Nov 01 - Nov 09 is 8 completed years while Nov 01 - Oct 09 is only 7). If (and that's a big if) you can push out your redundancy date to complete another full year there would be a tax relief benefit there.