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Do i pay income tax on my final months salary if i have been made reduntant with less than year service? |
I have been told my role within the company will become redundant. Do I pay Income tax on my last months pay If your final mnth's salary is just the usual salary, you will pay your usual tax-no reason why not. If however you are getting it as a redundancy payment, it may well be exenmpt (up to 拢30000). It depends on what your contract says & the terms of your redundancy. Look at HMRC website for more info. Source(s): HMRC website Yes of course why wouldn't you? Come to New Haven, CT! No taxes, and coming soon no laws! yes - the tax office doesn't know and its still taxable income. Yes you do but it should be less than what you normally pay because every month the pay is split in three parts (well for most of us) where the first part if tax-free, second is taxed at 10% and the remaining is taxed at 22%. If at the end of the month you find that you get paid the same, you will get taxed the same but if you leave early, you will be taxed according to what bracket they think you fit in. It is automatic. Most likely. Your employer would be deducting an amount calculated on a full tax year of earnings. If you don't work a full tax year, then you probably will be entitled to claim some back from the tax office. |
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