Taxed on notice period not being taken?

nick74

chrisbur said:

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.  

Me neither. I suspect someone has got their wires crossed, perhaps misunderstanding the change of rules on tax on PILON from 2018.

chrisbur

nick74 said:

chrisbur said:

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.  

Me neither. I suspect someone has got their wires crossed, perhaps misunderstanding the change of rules on tax on PILON from 2018.

This is what I was thinking, having read some details of the new PILON arrangements I did see some which might be mis-interpreted, for example....
"PENP represents the amount of basic pay the employee would have received had their employment been terminated with full and proper notice being served. This element is now subject to income tax and NIC deductions"
"All employees will pay tax and Class 1 NICs on the amount of basic pay that they would have received if they had worked their notice in full,"

I am of course taking these quotes out of context.