Law at work 2020 - the trade union guide to employment law (July 2020)

Chapter 11

Redundancy payments and tax

[ch 11: page 443]

Redundancy pay (both statutory and contractual) is tax free up to £30,000. However, employees and reps must be cautious. “Emoluments”, such as wages or notice pay, within any settlement are taxable as earnings (Richardson (Inspector of Taxes) v Delaney [2001] IRLR 663). Negotiators should take professional advice if in doubt. In April 2018, the tax treatment of payments in lieu of notice changed. See Chapter 10, page 345.


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