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Waiving PILON
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Chuckyegg_2
Posts: 1 Newbie
Hi
Been searching for an answer on this but to no avail.
My wife is being offered a redundancy package by her employer. They are currently offering a single lump sum. We have asked about payment in lieu of notice (which is specified in the employment contract) but they say that the terms of the one off payment includes agreeing to waive PILON. We are concerned that the revenue would disregard this and treat the payment as if PILON had been paid and therefore apply tax. they do not have a history of redundancy and therefore of paying PILON.
We are aware of the £30k limit but can anyone tell me if it acceptable for PILON to be waived in this way? We are not averse to it but don't want to be stuck with an unexpected tax bill.
Thanks
Thanks
Been searching for an answer on this but to no avail.
My wife is being offered a redundancy package by her employer. They are currently offering a single lump sum. We have asked about payment in lieu of notice (which is specified in the employment contract) but they say that the terms of the one off payment includes agreeing to waive PILON. We are concerned that the revenue would disregard this and treat the payment as if PILON had been paid and therefore apply tax. they do not have a history of redundancy and therefore of paying PILON.
We are aware of the £30k limit but can anyone tell me if it acceptable for PILON to be waived in this way? We are not averse to it but don't want to be stuck with an unexpected tax bill.
Thanks
Thanks
0
Comments
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Get them to indemnify you for any tax liabiliities, probably also need a comprimise agreement since it is not to contract, which they need to pay for independant legal advice so you can check then.0
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getmore4less wrote: »Get them to indemnify you for any tax liabiliities, probably also need a comprimise agreement since it is not to contract, which they need to pay for independant legal advice so you can check then.
+1
If HMRC chose to review this (which is only a small % chance to be fair) they could well apply some PAYE to the paymentGo round the green binbags. Turn right at the mouldy George Elliot, forward, forward, and turn left....at the dead badger0
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