settlement agreement

browngasm

Hey,

Looking for some advice if anyone can help.

I was recently made redundant and given a settlement agreement

Statuary Contractual Payment

PILON (3months notice) £13,786.5
Holiday Pay - £ 2,227.05
Statutory Redundancy Pay £3,556.00
Discretionary Payment - £10,000
Total - £29569.55

When i received my payslip i do not understand the deductions

PAY SLIP
Gross Pay
Hol Pay 2227.05
PILON NT 10000.00
PILON TX 11877.60
RedundacyNT 3556.00
Gross Total = £27,660.65

Deductions
P.A.Y.E. -4692.60
N.I. -584.15
Deduction Total = -5276.75

NET PAY = 22,383.90

I feel like i have been taxed twice on the PILON TX, i expect "PILON TX" detailed under gross pay to be £13,786.5 as it is specified in the settlement agreement not £11,877.6

I feel like it has been taxed, then taxed again under P.A.Y.E. Am i getting confused?

TAX CODE = 1122L

agrinnall

I think you need to ask your ex-employer, it's not likely that your PILON has been taxed twice as the net amount after tax on £13,786.50 would be a lot lower than £11,877.60. I suspect they've just made a mistake.