Question about tax on notice period

ukmummy

My work are making redundancies and I think I will go for voluntary but I don't understand one thing on the calculations they sent me. It gives a figure for my notice period of 11 weeks, then it gives 2 other figures which one is the statutory redundancy pay and the other is the enhanced package that they are offering. It says on this document that the 11 week notice period is subject to tax and they have also put "unworked notice may be subject to deductions. The firm will apply such tax efficiencies as are available".

Will my 11 weeks notice be taxed as if I were to work it (so normal rate tax and NI) or could they be doing it at a reduced rate? I just have no idea what that phrase means. Sorry if I'm being dumb.

getmore4less

I think they are saying if they pay PILON it may be taxed/NI.

If it is contractual or a standard practice then the chances are it will be taxed.

when it is not taxed/NI it can still be paid at the net rate allthough many companies pay gross.