Reader Question: Can I split my redundancy payment across tax years to save tax?

Reader Question:

Can I ask my employer to split my redundancy payment into two parts, either side of the tax year so i will pay less tax?

My response:

While you can ask your employer to split the payment across tax years they can not do it and any tax liability arises when the payment is due to be paid. One option open to you is to try and delay your redundancy until the start of the new tax year when you won't have had any other earnings. You could then manage your future income for the rest of the tax year to try and minimise your income tax bill for the year.

There are a few other ways in which you can try and minimise the tax you will have to pay on your redundancy payment which I cover in my post Reader’s Question – How can I avoid paying tax on my redundancy payment?

I hope that helps

Best Wishes

Damien

Money to the Masses

Website: www.moneytothemasses.com

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