Do ex gratia payouts count towards adjusted net income?

gracelet88

I can't find any clarity so far so hoping for some advice please. 30k is tax free but does that count towards adjusted net income for the year? What about the amount beyond 30k? Some is PILON, but some is not.

Dazed_and_C0nfused

All taxable income counts towards adjusted net income.  This includes taxable income which is taxed at 0%.

Income that isn't taxable does not count towards adjusted net income.

You seem to be creating a complexity that doesn't exist.

xylophone

Some is PILON, but some is not

Which being interpreted? 

https://www.gov.uk/termination-payments-and-tax-when-you-leave-a-job/what-you-pay-tax-and-national-insurance-on#:~:text=You'll pay tax and National Insurance on the part,re asked not to work)

[Deleted User]

Assuming a normal redundancy situation the whole amount including the pilon is employment income. However, the £30k is exempt from income tax and is not included in net adjusted income.