Taxed on Notice Pay

[robrr]

I am being made redundant from my job, having only been there 8 months I do not qualify for redundancy pay. I leave immediately being paid for a) Money owed to date , b) 1 month pay in lieu of notice and c) holiday pay accrued. My question is should I be taxed on all those payments as company proposes to do or should I be able to get my months notice as a cheque and therefore untaxed.

[PhilBy]

Be it earned or un-earned income it is all taxable.

[dot.hawkes]

But if your tax code is 491 or thereabouts and u havn't earned that in the 8 months you may get a rebate

[gammaray]

I'm afraid the revenue will get their pound of flesh. If you don't work for a while, you should get a rebate when you next start work (or after the end of the tax year from the revenue whichever is the sooner).

[WendyS]

Years ago money in lieu of notice in a redundancy situation used to be exempt from tax but the Inland Revenue changed all that and now all monies coming from your employment are taxed unfortunately. Although it doesn't apply to you I believe redundancy pay up to �30,000 is free of tax.