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PILON/Tax & Redundancy...
johnnymiller1000_2
Posts: 4 Newbie
Hi All,
I have read various threads on the topic of PILON and tax and can't understand where i stand.
I have in a nutshell been made redundant following a TUPE transaction and I am being dismissed for an ETO reason which I am relaxed about. I'm happy to be leaving in many ways.
Now, my last day is 18th June 2008. The HR person is telling me that my PILON is taxable as it is a "contractual payment".
This seems a bit ambiguous because PILON is not mentioned in my contract. All it says is "Initially your notice period will be three months rising to six months post 1 April 2005 subject to your performance review". There is no mention of treatment under early termination etc. So I've been given a statement showing my PILON and it states that its subject to tax and NI.
Is this the case? or am i best writing to the tax office or similar?
Many thanks for anyone who has any advice or has been through a similar scenario!
Johnny Miller
I have read various threads on the topic of PILON and tax and can't understand where i stand.
I have in a nutshell been made redundant following a TUPE transaction and I am being dismissed for an ETO reason which I am relaxed about. I'm happy to be leaving in many ways.
Now, my last day is 18th June 2008. The HR person is telling me that my PILON is taxable as it is a "contractual payment".
This seems a bit ambiguous because PILON is not mentioned in my contract. All it says is "Initially your notice period will be three months rising to six months post 1 April 2005 subject to your performance review". There is no mention of treatment under early termination etc. So I've been given a statement showing my PILON and it states that its subject to tax and NI.
Is this the case? or am i best writing to the tax office or similar?
Many thanks for anyone who has any advice or has been through a similar scenario!
Johnny Miller
0
Comments
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PILON is subject to tax and NI.Gone ... or have I?0
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And just as a back up, as usual dmg is correct (unless your t&c's state otherwise (about PILON not dmg
) :heartpuls baby no3 due 16th November :heartpulsTEAM YELLOWDFD 16/6/10"Shut your gob! Or I'll come round your houses and stamp on all your toys" The ONE, the ONLY, the LEGENDARY Gene Hunt :heart2:0
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