Taxed on notice period not being taken?

johnson_emma2

Hi - I have just secured another job with a different employer because I am due to be made redundant. 
I have asked to leave my current employer 1 month from the end of my consultation. 
I have 1 month contractual notice but my employer was giving everyone 13 weeks notice period. 
My current employer is now saying that I will have to pay Tax on the 13 weeks notice period even though I will not receive any monies for payment after the 4 weeks notice. 
Is this really true? Doesn't seem right/fair that I will be paying tax twice, 1 on my old job even though no longer working there or receiving PILON and 2, my new job!

Dazed_and_C0nfused

Can you explain what you mean with an example?

It reads as though you think you will be paid say £400 (for 4 weeks) but tax will be calculated and deducted as though you were being paid £1300 (for 13 weeks)?

johnson_emma2

That's right. My employer has said that if I waive the right to the paid notice then I will still be expected to pay tax on the 13 weeks even though they won't be paying me for the 13 weeks. 
They have said that they can't do anything about it as it's a HMRC tax rule not theirs. 
Redundancy notice starts on Monday 2nd Aug and I can leave at the end of August after 4 weeks. 
I'll get my redundancy payment not taxed plus 4 weeks pay plus holiday etc minus 13 weeks tax and NI?

molerat

You cannot be taxed on something you don't get so either you have misunderstood or they are talking rubbish.

johnson_emma2

@molerat that's what I said, seems ludicrous! 

Dazed_and_C0nfused

So potentially you could actually owe your employer money 

getmore4less

Reads as if you have not yet been formally put on notice of termination as redundant and still in consultation.......

You have resigned you are no longer redundant

If you have given 1 months notice that's what you should get paid and taxed on(+ accrued unused holiday)


Were they planning to have everyone work their notice or was there going to be PILON or garden leave.

johnson_emma2

@getmore4less that’s right, I am still in consultation. However they have said I will get paid my redundancy and I’ve said 4 weeks notice from end of consultation. 

Everyone (bar a few senior folks I assume will be getting different settlements!) will have to work their notice and no PILON will be given. 

Thrugelmir

When the time arrives the calculation performed will be almost certainly be correct. When there's hypothesizing involved fairly often the conversation becomes muddled as people end up on different tracks. 

Lrb

Hi

The exact same is happening to me. I've been told I don't have to work my 3 mo this notice but will still be liable for tax and national insurance for that period. I've posted on here as well so hopefully get some answers

chrisbur

Lrb said:

Hi

The exact same is happening to me. I've been told I don't have to work my 3 mo this notice but will still be liable for tax and national insurance for that period. I've posted on here as well so hopefully get some answers

I have looked and can find nothing that suggests that this is correct.  If it was known where the employer got this idea from then it could be checked out to see if it is true; so I suggested in your thread that you ask your employer where this comes from.