# Man loses £5500 from redundancy payout after UK tax trap

> Man loses £5500 from redundancy payout after UK tax trap.
- Title: Man loses £5500 from redundancy payout after UK tax trap
- Summary: Man loses £5500 from redundancy payout after UK tax trap. Clive Illenden lost £5500 from his redundancy package after his taxable income exceeded £100,000…
- Keywords: clive illenden, redundancy payout, uk tax threshold, personal allowance, hmrc, tax trap, 100k tax bracket, pay as you earn, entertainment, culture, news, Man
- Source: LADbible — https://ladbible.com/money/uk-news-budget-money-tax-threshold-trap-redundancy-442424-20261028
- Published: 2026-10-29T16:34:50.439+00:00
- Read time: 1 min
- Topics: clive illenden, redundancy payout, uk tax threshold, personal allowance, hmrc, tax trap, 100k tax bracket, pay as you earn, entertainment, culture, news
## Tax threshold anomaly
Clive Illenden lost £5500 from his redundancy package after his taxable income exceeded £100,000.
## Clive's retirement plan
Clive planned retirement at 57 after 20 years as legal and business affairs manager.
## Redundancy payment timeline
Company paid redundancy at end of financial year on 31 March, not diluted through pension schemes.
## HMRC bill shock
Clive received £5500 bill from HMRC less than a week after receiving redundancy payment.
## Tax calculation explanation
Clive's salary plus taxable redundancy exceeded £100,000, losing personal tax allowance.
## Tax expert advice
Emma McDermott explains tax threshold: lose £1 allowance per £2 over £100,000.
## Tax impact on income
Earning £100,000 triggers £27,432 tax, rising to £33,432 at £110,000.
## Childcare impact
Parents lose 30 hours free childcare monthly if one earns over £100,000.
## Clive's side hustle
Clive's YouTube channel grew to 100k subscribers in under a year after tax shock.
## Key takeaway

Clive Illenden lost £5500 from his redundancy package after his taxable income exceeded £100,000, triggering a tax threshold anomaly.