Redundancy and re employment

polomint_2

Can you advise please. Ive been made redundant and been paid 3 months in leiu of notice. If i get a job in that time will i be double taxed? I will not get my P45 until the notice period is up. What do i need to do? Many thanks:eek:

sangie595

Are you sure it is PILON and not garden leave? If it is PILON your P45 shouldn't be delayed by three months.

getmore4less

No one gets double taxed you just get taxed based on total earnings.

sangie595

But the 3 months PILON may be tax free - if it is PILON.

polomint_2

No its defo ILON. Do i have to inform the tax office ? They will prob change my tax code thinking i am earning double than i did before for three months? Thanks for your replies. No i will be paying tax as normal as if i was earning monthly the ILON.

sangie595

Ok - you may have lost out on the PILON, since, provided it isn't a contractual right, PILON can be (but doesn't have to be) paid tax-free. But no, the tax office won't be interested. You get a job and will have to complete a tax form P46. This will, unfortunately, mean that yes, for a short time you will pay more tax. But once the system "catches up", which generally doesn't take too long, your tax code will be adjusted accordingly and you won't end up out of pocket over the year. As the other poster said, you don't get taxed double - but you will be taxed on your total income.