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.
Salary sacrifice is the cheapest way for most UK employees to drive a new electric car, typically 20-35% cheaper than a personal lease. Here's why the maths works, with three worked examples.
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.
"Sacrifice" sounds like you're giving something up. You're not. You're making a deliberate choice about how your income works for you — before tax is calculated.
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.