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Redundancy whena company folds

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Comments

  • SarEl
    SarEl Posts: 5,683 Forumite
    An "emolument" is defined as salary or wages. Pay in lieu of notice is a compensatory payment for the employers breach of contract and is therefore NOT an emolumnet and is not treated the same for the purposes of Ni and Tax

    No sorry - this still isn't accurate. Pay in lieu of notice may be contractual and if that is the case then different rules apply than when it is not. Since the OP has not indicated anything about the nature of any potential PILON then it cannot be stated with any certainty that it is or is not tax and NI free. It is also still the case that whilst the payment may be tax and NI free it is not necessarily the case that this entitles one to the payment of gross rather than net pay. So whilst it is tax and NI free, it makes no difference to the actual £'s in your actual pocket.
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