Redundancy taxation

Crosswind

Hi all,

I was just made redundant and just wanna make sure i got the whole taxation thing straight.
So, the company offers the below:
1) Statutory redundancy: 4.5k
2) Payment in lieu of notice: 4.1k
3) Ex gratia payment: 7.6k
4) Untaken holiday pay: 1.9k

So, my understanding is that 1 & 3 are tax-free, 4 is taxed at the source, but what about 2?
Is this the so called "gardening leave" or something different?

Thanks in advance

Howjoe1

Crosswind wrote: »

Hi all,

I was just made redundant and just wanna make sure i got the whole taxation thing straight.
So, the company offers the below:
1) Statutory redundancy: 4.5k
2) Payment in lieu of notice: 4.1k
3) Ex gratia payment: 7.6k
4) Untaken holiday pay: 1.9k

So, my understanding is that 1 & 3 are tax-free, 4 is taxed at the source, but what about 2?
Is this the so called "gardening leave" or something different?

Thanks in advance

If pay in lieu is not provided as part of the terms of your contract agreement, it can be included as part of your lump sum payment and paid tax free subject to exemption limits.

2ndcoming

By my understanding it should go something like this -

1 is tax free.
2 may be tax free depending on your contract.
3 is tax free as non-statutory redundancy.
4 is taxable.

Crosswind

Many thanks guys! Much appreciated.