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Why is a UK termination package not simply tax-free up to GBP30,000 once you actually read what HMRC separates out?
People love repeating that the first GBP30,000 of a UK redundancy or termination package is tax-free, but payroll teams and advisers keep warning that the real answer is messier. Please explain why the headline survives, why it still misleads people, and what HMRC is actually separating inside the payment.
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