Tax on redundancy packages

The surprise is usually notice pay (especially PILON). People focus on redundancy pay and forget the taxable chunk.

What people miss

Notice pay / PILON

Often taxed like earnings. This is where the “why is it so low?” panic happens.

Runway impact

Even a £2–3k difference changes your danger month.

Fast loop

Calculate → sanity-check → plan

Redundancy pay first, then notice pay, then runway. Don’t skip step 2.