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[Archived] Redundancy Payment


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I'm in my final year of University at the moment and been handed a tax assignment. In my scenario, there is a redundancy payment of £45,000.

Now we have 2 options.

1. Take a job from another company in London

2. Go self-employed.

In the first option, our lecturer told us to tax £15,000 as the first £30,000 is exempt.

Now in the second option, he has a Projected tax adjusted income of £90,000. Do I add the £15,000 to this figure, taking the total income up to £105,000. Or do I not include the redundancy payment in the self-employment option?

Any help is greatly appreciated.

Thanks in advance.

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