Hi,
For my first contract, I worked for 6 months through a company and once I set up my own ld company, I moved the contract to it.
For that first 6 months period, the company paid me 17.5k in salary with all the NI and tax. and 5k as redundancy payment.
I know that there is a provision for redundancy payment for upto 30k. but if I declare this 5k as tax free redudancy payment, am I inviting trouble from HMRC?
Any suggestions/comments are much appreciated.
Thanks
V
For my first contract, I worked for 6 months through a company and once I set up my own ld company, I moved the contract to it.
For that first 6 months period, the company paid me 17.5k in salary with all the NI and tax. and 5k as redundancy payment.
I know that there is a provision for redundancy payment for upto 30k. but if I declare this 5k as tax free redudancy payment, am I inviting trouble from HMRC?
Any suggestions/comments are much appreciated.
Thanks
V