12% NI automatically deducted from protective award payment

jimmo

From memory, PILON is NICable when it is contractual or habitual but compensation is not. Whilst I didn't even consider it in my reply above it would only come into the calculation of notional NI at the calculation stage.
The government won't be paying PILON it will be paying compensation for the employer's breach of contract.

[Deleted User]

jimmo said:

From memory, PILON is NICable when it is contractual or habitual but compensation is not. Whilst I didn't even consider it in my reply above it would only come into the calculation of notional NI at the calculation stage.
The government won't be paying PILON it will be paying compensation for the employer's breach of contract.

Of course! My link was more pertinent in that it confirmed the NIC treatment of the payment. 

As I hinted earlier it refers to the reclaiming of tax but not NIC. Moreover, it specifically states that NIC does not apply if earnings remain below the lower earnings limit - it could be argued that the liability remains if the lower earnings limit is breached or, oddly, if the upper threshold has been reached when NI should be charged at 2%.

In the case in which I participated there were six employees affected. The payment had both NI and tax deducted but I have no idea whether or not any claims were made for refunds.

Ballyconnel

In respective of Protective Pay Award, if you gained employment within the 90 day period, does this exclude you from the claim?