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Redundancy - Tax Questions for PILON
stegsie
Posts: 5 Forumite
So, I've been made redundant and am finishing in September. My redundancy package is split into two pots payed to me in October - the first being my redundancy pay, the rest being my PILON (Payment in lieu of notice, and holiday pay, confidentiality payments etc)
I understand that the first lot (redundancy pay) will be tax free as it's below the £30k Tax Free Allowance for redundancy - I'm cool with that.
The other pot, however, is about 4 months pay so getting taxed on that in 1 pay packet will mean I pay a lot of tax on it (I'm already a high rate tax payer). Now, if I don't get another job straight off (I probably won't as I want a little break due to my health) if I am due a tax rebate due to paying too much tax (specifically on the 4 months pay in one month) then do I need to wait until April to claim any overpayment back?
I understand that the first lot (redundancy pay) will be tax free as it's below the £30k Tax Free Allowance for redundancy - I'm cool with that.
The other pot, however, is about 4 months pay so getting taxed on that in 1 pay packet will mean I pay a lot of tax on it (I'm already a high rate tax payer). Now, if I don't get another job straight off (I probably won't as I want a little break due to my health) if I am due a tax rebate due to paying too much tax (specifically on the 4 months pay in one month) then do I need to wait until April to claim any overpayment back?
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getmore4less wrote: »P50
Cheers! Much appreciated.0
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