Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Is redundancy money paid gross, or do we have to deduct tax and National Insurance contributions?

April 26, 2017contributions deduct gross Insurance money National paid redundancy tax

0

Posted

Is redundancy money paid gross, or do we have to deduct tax and National Insurance contributions?

1 Answer

0

Posted

Statutory redundancy pay is paid gross to the employee (that is, tax free). It may be possible to pay any additional severance pay without deduction of tax and NI, but it will depend on the terms of the employment contract and any agreed terms of severance. Seek legal advice.