Redundancy pay and tax: what you keep, and how to keep more
On a £37,000 package with £12,000 of notice pay, £30,000 is tax-free and the £7,000 above it costs £2,800 in tax. How it works, and how to keep more.
In-depth guides about UK tax, salary, and personal finance topics to help you understand and manage your money.
On a £37,000 package with £12,000 of notice pay, £30,000 is tax-free and the £7,000 above it costs £2,800 in tax. How it works, and how to keep more.
Free childcare hours and Tax-Free Childcare both stop at £100,000 of adjusted net income, as a cliff rather than a taper. For a family with two under-fives, cash does not beat sacrifice until £140,473.
Income tax thresholds are frozen again. But student loan thresholds, EV BiK rates, NMW, and redundancy caps have all changed. Here's what you need to know.
A £5,000 bonus doesn't mean £5,000 in your pocket. If you're a basic rate taxpayer, you'll take home around £3,600. If you're a higher rate taxpayer, that drops to roughly £2,900.
A £10,000 raise at £35,000 puts £600 extra in your pocket each month. The same raise from £100,000 to £110,000? Just £317.
Most people have never heard of fiscal drag, but it's probably costing you hundreds of pounds a year – and you'd never notice it happening.