Redundancy do I pay National Insurance

morrow56

HI

Do I pay national insurance on my redundancy or just tax if the payment is over £30,000

thanks

Debt_Free_Chick

You only pay NIC on any part which is PILON.

If there is no PILON and all you receive is statutory and/or contractual damages, then there is no NIC and - as you say - no income tax, on the first £30k

ffacoffipawb

Debt_Free_Chick wrote: »

You only pay NIC on any part which is PILON.

If there is no PILON and all you receive is statutory and/or contractual damages, then there is no NIC and - as you say - no income tax, on the first £30k

Not true, I had a small amount of NI deducted from a redundancy payout in 2007 (as well as income tax on the amount over £30,000). It was less than 0.5% NI, not sure how it was worked out.