PILON - should car use benefit be included?

ackworth

I have just received my salary check which details my redundancy payments (statutory and company) and PILON. However, the PILON payment for 12 weeks only covers my basic salary and does not cover company car use and BUPA, both of which I have been told will stop.
Is that right?

orlao

I would think so.

Because you've had PILON you no longer work for the company so are not entitled to any benefits and if you've overpaid tax (as your tax code will reflect benefits in kind) you will be due a refund but probably not until you receive next years P60.

Sorry

kateab

I got these included in my PILON but then I had a solicitor dealing with my employers as we signed a compromise agreement. So, I had it agreed before it was paid.

Actually thinking about it, I took redundancy before and I got paid in lieu of all my benefits on top of the PILON.

It is probably too late now but it is a useful reminder to all in similar situations to clarify such points before you leave / get your final payoff. Still, probably worth asking - in my view, you're paid in lieu of notice and that should probably include everything you were paid and / or given as a benefit in kind.

kateab

ackworth

Many thanks for your responses.

I actually leave on the 29th May so can challenge the PILON amount but wondered if there was a regulation that specified that the value of benefits should also be given in addition to the basic salary. My last salary benefits package statement values the car and medical insurance at £5.5k p.a. on top of basic.

kateab

I don't think there is a regulation that states it must be paid. The best place to look is on somewhere like Directgov which is comprehensive and clear in most instances.

kateab

getmore4less

PILON should pay you what you would have got if you had actualy worked so should include all benifits or a cash equivilent.

I think PHI can be missed since in most cases this could not trigger anyway.

whyayeman

I'd had a company car for around 20 years, until it was due for renewal last November. Opted to buy and use my own vehicle for business for the first time, and was allowed a very nice £500 a month. Made redundant in January! I'm not sure whether it's a rule or not, but I was given 3 months car allowance on top of my PILON (all non taxable). Colleagues who had company cars were able to keep the car for three months whilst on gardening leave. Anyone want to buy an X-Type?

hundredk

If the car is contractual the you should receive payment in lieu, especially if this is a taxable benefit.

In my previous job I had contractual company car and the option to have pay in lieu of the car based on whole life costs.

When made redundant I received PILON plus the pay in lieu of the car for the notice period. Since the car was no longer required by the comany I was given first refusal to purchase at CAP price.

I also recieved a nominal amount in lieu of mobile phone on the same basis.