I'm hoping someone can help with this query. I'm being made redundant on 31st March 2020 and have been told that I will receive my redundancy payment and PILON on 10th April 2020. The contract I have signed clearly states my last day as 31st March.

I'm aware that PILON is fully taxable whilst the first £30K of the redundancy payment is tax free. My question is that with my leaving date being in 19/20 tax year but my payment being in 20/21 tax year, in which year will tax on the PILON be taxed? I am on PAYE but also do self assessment due to being a higher rate tax payer who claims child benefit.

Any advice would be appreciated as don't want to be hit with an unexpected tax bill at some point.

Thanks in advance :-)
This discussion has been closed.
Latest MSE News and Guides

British Gas prepay meter users...

...to pay less for gas from 1 April

MSE News

The 'odd Easter flavours' thread 2023

What bizarre food stuffs have you spied?

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools