Hi,
I have been offered 3 months salary to leave my job. This is NOT a redundancy payment, as they will want to fill the position after I leave.
My question is what tax do I pay on the 3 months salary?
Thanks.
I assume you will get this in a lump sum so you pay tax on all of it less your tax credits that week. Assumimg your single: 700ish @ 20% the rest at 41% less your normal credits.
You can claim tax back it you dont work for the rest of the year for the unused credits for those few weeks. If you got his in january or even a few months and didnt work for the rest of the year you would probably get alot back.
To your question its taxed as normal income for that week, like a lump sum cash bonus.