Redundancy pay and National Insurance contributions

Payment	Do I pay tax?	Do I pay National Insurance?
Redundancy payment	Only on the amount over £30,000	No
Unpaid wages	Yes	Yes
Bonus payment	Yes	Yes
Occupational pension	Yes	No

Your employer will deduct tax and National Insurance Contributions using the guidance we provide. He or she should also give you a form P45 Details of employee leaving work when you leave.

If your employer pays your redundancy pay before you leave the employment, form
P45 will reflect the pay and tax deducted through Pay As You Earn (PAYE).

If you are paid after you have left the employment and you have already been given
form P45, your employer should not give you another. Instead, your employer should
give you documentary confirmation of the payment (for example a letter, payslip or
other printed document) stating:

• the date of the payment
• the amount of payment
• the amount of tax deducted
• confirmation that the payment is a post-leaving payment.