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Is redundancy payout / PILON taxable?
sweaty_betty
Posts: 1,337 Forumite
Hi there - I had always thought that all redundancy payments were tax-free up to £30K. However, I'm now aware that this isn't always the case.
Can anyone explain where tax may or may not apply (in simple terms) please?
Also, if individuals are being "let go" on compromise agreements, is this true redundancy or something different?
Many thanks
Can anyone explain where tax may or may not apply (in simple terms) please?
Also, if individuals are being "let go" on compromise agreements, is this true redundancy or something different?
Many thanks
0
Comments
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Not easy some payments can fall eiher side of the line.
Generally contractual payments related to employment are taxable.
Notice pay(worked, garden leave)
Accrued unpaid holiday.
Retention bonus
all taxable.
PILON if contractual or custom and practice then taxable.
Settlement agreements(compromise went out a while back) can be a redundancy or not, should say in the agreement.
even if not redundancy the up to £30k compensation can still be given0
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