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Pilon

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Comments

  • robin61
    robin61 Posts: 677 Forumite
    edited 1 July 2018 at 9:07PM
    As getmore4less states you have two separate payments redundancy whether compulsory or voluntary as in your case and then PILON on top.

    The first 30k of the redundancy (compulsory or voluntary) assuming it is an ex-gratia payment will be tax free and the whole lot will be NI free.

    PILON now will be taxed and NI regardless of whether PILON was stated in your contract or not.

    Is the company actually stating they will pay you over 3 years ? Or are you asking them for it? It seems quite a strange arrangement ?

    You can have it all in year one of you want or you can spread it over 3 tax years. It's been like that for many years and it's a large multinational company. I think it's unlikely they would allow anything that HMRC doesn't allow.
  • ChuckMountain
    ChuckMountain Posts: 194 Forumite
    Tenth Anniversary 100 Posts Combo Breaker
    Fair enough, just watch for the liability clause as you are responsible for paying the correct tax not the company at the end of the day.
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