Payment in Lieu Of Notice

davidpa

Hello all, hope you can advise...

Being made redundant on the 28th March. Last pay-packet 21st March. Redundancy payment being made on 28th March. Only being given 4 weeks notice (should have 12) so have PILON (Payment In Lieu Of Notice) for 8 weeks plus BEILON (Benefits In Lieu Of Notice). Just found out this is also being made on 28th March (was going to be 21st April).

Phew! The Questions are - if the PILON & BEILON payments are being made on the 28th March will I have to pay tax on it as if it's payment for this tax year (at 40%)?. Is the company allowed to do this? Can I insist on payment being made in the following tax year (i.e. 21st April)?

Thanks for your help.

Mikeyorks

http://www.hmrc.gov.uk/manuals/eimanual/EIM12975.htm

There's a link here to show the normal HMRC attitude .. i.e that generally this is the salary due for the period of notice, and is therefore taxable. And it will generally (read the embedded links) be taxable at the point of payment i.e 2007-08 for the payment date you quote. But you'll need to read some of the potential exemptions in relation to your circumstances.

I doubt you'll have any success arguing the date should be 21st April ... unless you persuade the employer to change the actual payment date.

davidpa

But as it's pay for what I would have worked in the next tax year, can I insist on it being paid in that tax year?

Thanks