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Damages Award

I am due to receive a lump sum in damages from a previous employer as the proper notice of termination of employment was not given. I was wondering where I stand in regard to tax on this money?

Comments

  • Horace
    Horace Posts: 14,426 Forumite
    I would have thought that it would have been tax free - I know that redundancy money usually is.
  • tigtag02
    tigtag02 Posts: 6,857 Forumite
    Part of the Furniture Combo Breaker
    Horace wrote: »
    I would have thought that it would have been tax free - I know that redundancy money usually is.

    However, the OP sounds more like PILON (payment in leiu of notice) which does attract tax and NI.

    We cant really answer your query without knowing exactly what the payment is for.
    :heartpuls baby no3 due 16th November :heartpuls
    TEAM YELLOW
    DFD 16/6/10
    "Shut your gob! Or I'll come round your houses and stamp on all your toys" The ONE, the ONLY, the LEGENDARY Gene Hunt :heart2:
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