Check how long youve worked for your employer.
If not, you could be in line for compensation.
If you dont need all your redundancy money to meet your living expenses, consider saving or paying off debts, or even contributing to your pension.
However it's important to understand one thing.Simply call up Jobcentre Plus on to find out how to make a claim (or claim online ) as it can take several weeks, sometimes months to get the payments sorted.Step 2: early conciliation If you dont get your payment after sending your letter, you need to contact Acas.Check how to find them in our Low Income Grants guide.A spending diary can help you keep track of where your money is going at the moment.You won't pay any tax on your statutory redundancy pay.For example, some may give furniture or food grants while others may give cash.This is one case where you may be a lucky victim of mis-selling.What is tax free?If your company or industry has a union and you're not a member, it's worth considering joining.
The same's usually true if you take voluntary redundancy, so check first.
Redundancy and payment protection There are punch home design platinum tutorials a number of types of insurance policy that will cover your income, or just certain loan repayments, if you lose your job.
Putting your redundancy payment into a pension.
This situation cant continue.
The first 30,000 is tax free (see below) though anything above this is taxed at your marginal rate.If you are turned down for a claim due to a reason you did not expect, check to see if you have been mis-sold the policy (see the PPI Reclaiming Guide in which case you can reclaim the cost of the insurance.Plus it isn't the age you are now that counts, but the age during each year you've been in your job.Your redundancy pay will be based on your usual pay from before you were off sick.If you need help with relationship problems Relate has lots of useful info and if you're feeling depressed the Samaritans is always there to help, either through its website or on the phone number 116 123 (it's free to call).You should also get a written statement saying how your payment was calculated.If you've been claiming Jobseekers Allowance for more than three months (and less than nine if you're 18-24 or 12 months if you're 25 you're entitled to a Jobcentre Plus Travel Discount Card.The first 30,000 of redundancy pay is tax free Whether it's statutory (see above) or contractual redundancy pay, the first 30,000 you receive is tax free, and no national insurance contributions are deducted either.