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Ill health payment taxable????
BFM123
Posts: 2 Newbie
in Cutting tax
I have been awarded 2 years salary from my employer as i am unable to continue doing my job due to health reasons, am i liable to pay income tax on this ill health payment? TIA PS I am 60 years of age.
0
Comments
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Is this through a health insurance plan?0
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Hi Sheramber, No its not through an insurance plan as such, its something my company offers if you have to leave employment due to health issues and are no longer capable of doing your job.0
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The following from
https://www.gov.uk/government/publications/cwg2-further-guide-to-paye-and-national-insurance-contributions/2019-to-2020-employer-further-guide-to-paye-and-national-insurance-contributions--3
5.11.2 section 6
6. Lump sums to compensate for loss of employment through disability, injury or ill health.
This prevents the employee carrying out the duties of the employment. Where such a payment is over £30,000, you may wish to agree with us before you pay the whole amount tax-free.
Include in gross pay for National Insurance contributions purposes
No
Include in gross pay for PAYE purposes
No0
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