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About Derek

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    Some Bloke

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  • Location Bavaria
  • Nationality British
  • Hometown North Yorkshire Coast
  • Gender Male
  1. When you've worked for a company for many years and they want to make you redundant and give you a big 6-figure settlement, that's normally immediately taxable at I believe near-as-dammit 50%. If you then decide you're not going to work for the next few years and plan to retire early (or just take a few years off), can tax on that redundancy payment be offset somehow?   I heard talk of someone who knows someone who took their payout and invested it into some kind of startup company and thereby avoided the immediate tax liability. I assume that if they got that money out of that investment with or without some change in its value, they'd then be liable for that taxation they avoided.   I wondered whether an alternative would be to start up a freelance business doing whatever you were doing before (for your employer), and pay yourself a fixed salary from it, like 20-30,000 which shouldn't incur too high a tax percentage. You'd keep that freelance business going until the investment funds ran out. You've then converted that one-off lump into a number of smaller lumps that are regular income and benefit from the 8k or so that you get tax-free and the 8-20 (or 8-30) would be at a lowish rate too.