Redundancy payments and tax 



Redundancy pay (both statutory and contractual) is tax free up to £30,000. However, employees and reps must be cautious, especially because “emoluments” (such as wages or notice pay) within a settlement will be taxable as earnings (Richardson (Inspector of Taxes) v Delaney [2001] IRLR 663). Negotiators should take professional advice if in doubt. 



Prior to the announcement of the snap election for June 2017, the government was proposing changes to the tax treatment of termination payments from April 2018 (see Chapter 10 , page 390).