i just got made redundant

taking the pay outand getting pissed tonight!!!!!!!!!!!!!!!!!!

Did you have a pension with them Dragon?

Good for you m8.

dom mclean is on american pie

coz i know your in love with him!!!!!!!!!!!!!!!!

yes pewnsion sorted aspro!!!!!!!!!!!!!!!

Did you get a nice payoff ?

Don't forget your pink carnation

Good stuff, if you ever want help with it pm or email mate... enjoy!

Anyway T.D. Enough of this shenanigans, Palace at home to Brighton tomorrow afternoon. I'm fully expecting three points heading our way amigo

big pay out !!!!!!!!!!!!!!!!!!!!!!!!!!!!! wow

carnival is over!!!!!!!!!!!!!!!!!!!

so much money not sure what to do with it!!!!!!!!!!!!!!!!!

palace are going downd s\SB

good luck to you dragon. remember you worked hard and earned every penny of your pay off.

no old age pension for 6 yrs, don't harry monk it all away Dragon

The old age pension a bonus Terry. He'll get his works pension immediately.
N1 btw Dragon. Great age to get made redundant if you're on more than basic terms which I'm assuming you are.

At 60 Dragon your close enough to the end goal,it's only fear of the unknown that keeps people of our age to keep working, no doubt at this stage of your life your mortgage free. Hopefully have some savings. First thing you can do if you have a partner who's not working get yourself down the council office to get rid of your council tax. After a serious health scare I said life's to short to work. We now live on a third of the money I was earning back then. Cut your cloth accordingly and you'll be fine.

only fear of the unknown that keeps people of our age to keep working  Don't agree with that. i was made redundant  got bored at home so got a part time job
When you finish work you lose loads of friends who were workmates and to be honest waking up in the morning wondering what shall i do today is dull

Agree with some of that Mick, I don't work and especially over the winter period got bored and did think about getting a part time job so I agree with you not working is not all it's cracked up to be. However where I disagree is workmates, yes I've had a few what's I'd call friends over the years but few and far between. Basically your with a bunch of people you necessarily won't be with in any other situation. All are there to put food on the table, pay the light bill etc etc therefore you meet a lot of backstabbers. All of my friends have come from people I have met through common interests, in my case football and fishing.

Workmates and friends are two completely different things ,and redundancies usually highlights this.

dragon enjoy your retirement,if ya get bored start a part time job working for yourself good luck !

ufcdan , love fishing still go the odd time and enjoy it ,i think back to when i was a nipper used to go night fishing all weathers even january feb with snow and often  broke the ice to fish ,all this would be with a fishing umbrella a bit of polythene round the brolly and a thin sleeping bag  and a garden type canvas sun lounger ,must have been as hard as nails back then  or crazy !

Remember those days Foyle my mum used to get the hump as I nicked her pegs to attach the plastic to the umbrella. Mind you if went with mates it usually entailed eating our sandwiches and drinking what ever booze we'd manage to get hold of then go to sleep. Then in the morning off home but not before stopping at the cafe

Another childhood memory was the start of Pike fishing season, 1st October. It was always frosty unlike today. Have to admit I'm bit of a fairweather fisherman. Won't go if it dips below 50

yeah thats it the pegs ! a half dozen of us used to go for weeks in the school holidays usually the thames at windsor or the lea at cheshunt herts ,in those days you never paid any  train fair ,just used to flash a used return ticket picked upoff the floor  at the train station  the ticket collector couldnt be arsed to challenge ya ,cook on an open fire , tinned  tomatoes beans and those tinned hot dog sausages most of the time , only went home when we were skint !

I used to fish the Lea and the Thames at Shiplake. Most of my time was spent on theGrand Union canal

It is important to distinguish between friends and colleagues.

cant be fcud reading the thread,redundancy capped at 28k.

??

Don't forget the 25% tax free lump sum! I'll be tempted to take the lot at the earliest opportunity. They might change legislation one day and stop you doing this. It would be tricky to know what to do with the big lump sum though.

uk.gov.uk redundancy will tell you it all

chavman
cant be fcud reading the thread,redundancy capped at 28k.

Not sure that's correct. Maybe for tax free purposes.

Redundancy pay
You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for 2 years or more.

You’ll get:

half a week’s pay for each full year you were under 22
one week’s pay for each full year you were 22 or older, but under 41
one and half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years.

If you were made redundant on or after 6 April 2018, your weekly pay is capped at £508 and the maximum statutory redundancy pay you can get is £15,240. If you were made redundant before 6 April 2018, these amounts will be lower.

from you.gov.co.uk

It should be noted that an employer must pay the minimums but can set their own redundancy provisions. I personally netted £30k for 15 years service (some years back mind)

Yes down to the Employer alot of People get more than the Basic.

Correct me if this has changed but you are also entitled to one week's notice for every (full) year worked, up to a maximum of 12 weeks. They can either make you work it or give you paid garden leave. I got garden leave with my first redundancy but had to work the second.

Its also good to develop a little imaginary illness that you can call on sometimes to get out of doing things, people are quick to spot when you are retired.

... and if that wasn't enough they also have to pay you outstanding holiday leave

And to add even more, if you are made redundant midway through a tax year you may also be entitled to a tax rebate, although in this scenario I doubt that applies.

I wish you good fortune and relaxation Mr Dragon. Make it last and enjoy your enforced retirement, if you can.

@Chavman
That's statutory redundancy. Companies can choose to pay more and lots do.

Aspro, i have wondered about that before. I believe first 30k of redundancy is tax free.

But if you get redundancy pay in February you have already used up your 12k tax free earnings for the year. If you get redundancy pay in April then you get another 12k tax free i think

It doesn't work like that PG; tax is based on average earnings to date each month (which is then annualised) and is more apparent on flexible incomes. Just because you've earned over your tax limit doesn't mean you've paid the right amount of tax, you may well have overpaid.

For example, assume you earn £2k per month, £24k per annum. After 10 months you've earned £20k, which is above the tax-free allowance as you said. Based on last year (£11.5k allowance) you would have paid tax on £20k less £9583.33 (tax allowance to that point). You would have paid £2083.33 tax up to that same point.

Now assume you are made redundant and don't earn any other income in the other two months of the tax year then you've earned £20k for the year.

£20k less allowance of £11,500 = £8,500 taxed at 20% = £1,700. You are now due a rebate of £383.33

As for the first £30k of redundancy being tax free that is still correct from my understanding.

heads up for anyone been made redundant through the firm going bust and claiming your redundancy pay,notice pay off the government, always sign on the dole if your entitled because the dhss will assume you've signed on anyway and subtract any dole,job seekers off your notice pay ,whether you've received it or not

Another way of putting this is with flexible income (usually commission). In the first month you may earn £3k. Your income to date is £3k and you are taxed on that less your monthly allowance.

So in practise you earn £3,000, less monthly allowance (£958.33) x 20% = Tax £408.33

Month 2 you earn £1000 (total income to date £4,000)

£4,000, Less 2 month's allowance (£1916.66) = £2083.34 x 20% = £416.67

You've already paid £408.33 so your tax in month 2 will be just £8.34

... and so it continues throughout the year.

On the subject of signing on the dole, Jobseekers Allowance is a taxable benefit and is added to your annual income. Not sure what it is these days but if you sign on for a whole tax year you will not pay tax on it due to it being below the threshold.

The Dragon

Plenty of more time to get those football tips right for once!!!

Jokes aside, this guy is one of the best football analysts I've ever come across. His knowledge of the lower leagues, second to none. Enjoy a long and happy retirement.

Thanks aspro, i was thinking of the tax on the redundancy, doesnt redundancy count as earnings? So if you earn 24k a year and get a £41.5k payout (somehow)

Redundant in march - youve used all your tax free on your wages that year so you get 30k tax free redundancy and pay tax on the other 11.5k
Redundant in april - youve got 30k tax free and the other 11.5k is your earnings for the year so far. As long as you dont work that year, no tax on that either. Although id imagine youd get walloped for your bumper April earnings because it looks like you just had a massive pay rise, and then get a rebate later. Is that right or still wrong?

That sounds about right PG. I haven't personally come across that situation but as long as the £41.5k is paid on or after April 6th (relevant) then yes you could get taxed and would then claim a rebate of it all. If you are paid at the end of the month (April in this case) then it could be seen as an average pay (£11.5k x 12). Tax would be heavy on that but it isn't a major concern either as the tax office (believe it or not) are quite efficient.

I was made redundant midway through last year and so I phoned the tax office to advise them I wasn't going to work again this tax year. They took my word for it and refunded my tax straight away even though there was still six months to go. I lived off my savings and did not draw my pension until (ironically) today, although I took my lump sum back in December.

With regards to a March redundancy then the additional £11.5k would be added to your income and taxed accordingly, probably partially or completely at a lower rate, depending on what you earned that year.

It should also be noted that if you decided to claim benefits then again these are taxable (JSA) however, if the same rules still apply as last (tax) year then you cannot claim benefits with savings of more than £16k anyway.

good website for pension information

  pensionwise.gov.uk

   well worth a look.