Paying tax on notice payment

Lrb

In September I will be made redundant. I have 3 months notice which would take me to December.  My employer has stated if I wish to leave earlier I can agree in writing  to waive the balance of my notice but I would still be liable for the tax and national insurance for this period and this will be deducted from my redundancy payment.

I understand the new tax law now states this but if I am starting a new job surely I will be paying the appropriate taxes. Therefore I will be paying twice as much tax.

Am I missing something here ?

chrisbur

The tax law regarding PILON has recently been updated but I have not seen anything along these lines.  Could you ask your employer to give details of where this comes from eg a link to the .gov site.

getmore4less

https://forums.moneysavingexpert.com/discussion/comment/78476760#Comment_78476760

Lrb

Thanks for your replies. Below is the email received from my company with the FAQ.

What happens if I have been served with notice of redundancy and want to leave before the end of my notice period because I have another job to go to? 

We will try and agree this with you where we’re able to do so. You will need to agree in writing to waive the balance of your notice period in order to do this. However, you should be aware that under HMRC rules, you would be liable for any tax which would have been paid on any remaining notice pay, even if it’s not been worked by you and this will be automatically deducted from your redundancy payment. 

Brie

Presumably you would be paid what you would normally would get for those 3 months and for which you would still need to pay NI & taxes.  I didn't think this was anything new.

Lrb

Brie said:

Presumably you would be paid what you would normally would get for those 3 months and for which you would still need to pay NI & taxes.  I didn't think this was anything new.

From what I understand I would be waiving my payment but still be liable for the tax as if I would be paid

General_Grant

Lrb said:

Thanks for your replies. Below is the email received from my company with the FAQ.

What happens if I have been served with notice of redundancy and want to leave before the end of my notice period because I have another job to go to? 

We will try and agree this with you where we’re able to do so. You will need to agree in writing to waive the balance of your notice period in order to do this. However, you should be aware that under HMRC rules, you would be liable for any tax which would have been paid on any remaining notice pay, even if it’s not been worked by you and this will be automatically deducted from your redundancy payment. 

Ask them where this HMRC rule is documented so that you can see how HMRC present this.

chrisbur

Hopefully the OP can get the exact source as to me this sounds very similar to details for the new rules regarding PILON.
I quoted a couple of examples which if taken out of context could suggest this, in another post relating to this subject.
https://forums.moneysavingexpert.com/discussion/6283503/taxed-on-notice-period-not-being-taken#latest