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
Twitter: money2themasses
The material in any email, the Money to the Masses website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 30th June 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
