We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Should PILON still be taxable?
Options

mn89
Posts: 1 Newbie
Hi MSE,
Prior to April 2018, my understanding was that PILON was not taxable but is now. Due to the current tough times, should the government revert back to this law with so many redundancies on the horizon?
Thanks,
MN89
Prior to April 2018, my understanding was that PILON was not taxable but is now. Due to the current tough times, should the government revert back to this law with so many redundancies on the horizon?
Thanks,
MN89
0
Comments
-
In practical terms, PILON usually was taxable just as it is now. My understanding is that prior to 2018 in certain situations, such as if there was no PILON clause in the employment contract, then PILON could be treated as compensation and therefore not taxable up to £30k, in a similar way to redundancy pay. However I suspect that most employment contracts do include a PILON clause, so it would always have been taxable under the old rules anyway.1
-
Don't for get PILON is to put you the position you would have been if you worked.
Even when not taxable the employer could pay out NET pay rather than GROSS keeping the tax and NI for themselves.0 -
PILON is already a gift - you're getting paid for the time you would have worked, but you don't have to work it.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards