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Settlement agreement - compensation/redundancy tax

I am being made redundant - however - I have just had a grievance upheld stating I should have been given a job at the start of the process (I was on maternity leave). After a lot of moaning I have managed to negotiate myself into a position where my employers are offering me a settlement agreement to leave earlier than planned which is made up of 3 payments - redundancy/PILON/ex gratia compensation. I’m comfortable with the tax on the redundancy & PILON.
My question is around the tax on the ex gratia part of it - should this be taxable or not - as its not a contractual payment and not in reward of working for them I believe not - but I’m no expert!
Any views?
Thanks

Comments

  • Peelerfart
    Peelerfart Posts: 2,177 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Tax on PILON, yup that's normal, tax on redundancy, anything over 30k.

    Why are they paying an ex-gratia? What's it to compensate you for?
    Space available for rent
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