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PILON taxable?
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Not necessarily true - Civil Servants who were in post continuously since April 1987 get what they call "reserved rights" add not only get, consideraby more but also the tax free amount is enhanced to around £60k !!Redundancy payments of £30,000 or less are tax free. Anyone lucky enough to be being paid over £30,000 will have the element that is over £30,000 taxed as income.0 -
I was made redundant in October last year and had my PILON amount taxed, was not written in my contracy. I received my statutory payment tax free but the 4 weeks was taxed. In theory should I have been able to argue thus with HMRC? Too late to do so still l?0
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Unlikely.....I was made redundant in October last year and had my PILON amount taxed, was not written in my contracy. I received my statutory payment tax free but the 4 weeks was taxed. In theory should I have been able to argue thus with HMRC? Too late to do so still l?
It depends on whether or not your original contract of employment entitled you to a payment in lieu of notice. If your contract says that you are entitled to it, then payment in lieu of notice is a payment your employer is obliged to pay you. As such, it is not ex gratia and will be taxable.0 -
No my contract did not say I was entitled to it. They simply didn't need me for the 4 weeks notice period. As well as you mention it I received a ex gratia payment of 2.5k. This was also taxed at source according to my last payslip received.
Could this also be eligible for tax free payment?0 -
Again - unlikely - was it mentioned in your contract ?No my contract did not say I was entitled to it. They simply didn't need me for the 4 weeks notice period. As well as you mention it I received a ex gratia payment of 2.5k. This was also taxed at source according to my last payslip received.
Could this also be eligible for tax free payment?0 -
No the ex gratia was payment they made in their words "they didn't have too but it was for good service". In part I guess it was towards the bonus I was not able to receive given it would have been made after my termination date.0
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