Explained in plain English

Are severance payments taxed?

Canva's generous severance package, including six months' pay and health cover, is designed to support departing employees. In the UK, certain elements of a redundancy package, such as statutory redundancy pay and payments for loss of employment, can be tax-free up to a limit of £30,000. Payments above this threshold, or for things like untaken holiday, are usually taxable.