Lieu of notice 2

hilow

Hi again
A follow on question from my previous one regarding monies in lieu of notice help needed http://forums.moneysavingexpert.com/showthread.html?t=1410631 .
I have just phoned the job centre to sign on, and have been asked about any savings I have. I have more than the 16000 limit so apparently am not entitled to job seekers allowance. If I do not receive jsa will I receive my monies in lieu of notice in full with no deductions.
Thanks

briona

The first £30,000 of statutory redundancy pay (0.5 week's pay per full year worked up to the age of 22, 1 week's pay per full year worked between the ages of 22 and 40, thereafter 1.5 weeks' pay) is NOT taxable. The link below suggests that you refer to HMRC (and gives a link) to find out whether PILON is taxable.

http://www.direct.gov.uk/en/Employment/RedundancyAndLeavingYourJob/DG_10029836

I would have thought that even with your savings you would be entitled to contributions-based JSA for 6 months as you will have been paying enough NI to be eligible. Regardless of this, the main reason you might want to sign on now is that even if you can't get JSA, your NI contributions will continue to be paid.

ceridwen

I'm sure someone will correct me if I'm wrong - but my understanding is that one is entitled to Jobseekers Allowance for the initial 6 months of unemployment - whatever capital one has. One swops over to means-tested benefit in month 7 - and THEN they take account of what capital you have.

I'm just not sure whether one can spend one's own capital freely in months 1-6 - or whether you're expected to hang onto it for them to take into account come month 7.

LittleVoice

As ceridwen says, as long as employee NI contributions have been paid for the relevant years, contribution JSA is payable for up to 6 months and savings have no bearing on this.

They do ask about savings (and if you have a partner/spouse about their employment) at the start of a claiming period even when there is no relevance to contribution JSA being claimed.

hilow

Thanks all for your advice.