Making staff redundant
Tax when making staff redundant
If you make staff redundant, you may give them a 鈥榯ermination payment鈥�. This could include:
- statutory redundancy pay
- holiday pay
- unpaid wages
- company benefits, for example bonuses
You must deduct tax and National Insurance from some payments.
You do not deduct tax on the first 拢30,000 of statutory redundancy pay.
What you鈥檒l deduct tax and National Insurance on depends on what鈥檚 included in the employee鈥檚 termination payment.