Voluntary Severance

[Nealhello]

Hi All,

I am leaving my company on the 31st of March under a voluntary severance scheme. My lump sum payment which will be payed in the middle of April is over 30K.

Could anyone tell me if this lump sum will be treated at tax earnt in the tax year 2021-22 or 2022-23.

As I am retiring this will make a big difference in terms of tax I pay.

Any help would be very much appreciated.

All the best

Neal

[darthblingbling]

Earlier of date of payment or legal entitlement.

If being paid in middle of April I'd imagine it will be taxable in 2022/23. Depends on the wording of the settlement agreement tho