Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • browngasm
    • By browngasm 11th Jul 18, 11:03 PM
    • 1Posts
    • 0Thanks
    settlement agreement
    • #1
    • 11th Jul 18, 11:03 PM
    settlement agreement 11th Jul 18 at 11:03 PM

    Looking for some advice if anyone can help.

    I was recently made redundant and given a settlement agreement

    Statuary Contractual Payment

    PILON (3months notice) 13,786.5
    Holiday Pay - 2,227.05
    Statutory Redundancy Pay 3,556.00
    Discretionary Payment - 10,000
    Total - 29569.55

    When i received my payslip i do not understand the deductions

    Gross Pay
    Hol Pay 2227.05
    PILON NT 10000.00
    PILON TX 11877.60
    RedundacyNT 3556.00
    Gross Total = 27,660.65

    P.A.Y.E. -4692.60
    N.I. -584.15
    Deduction Total = -5276.75

    NET PAY = 22,383.90

    I feel like i have been taxed twice on the PILON TX, i expect "PILON TX" detailed under gross pay to be 13,786.5 as it is specified in the settlement agreement not 11,877.6

    I feel like it has been taxed, then taxed again under P.A.Y.E. Am i getting confused?

    TAX CODE = 1122L
Page 1
    • agrinnall
    • By agrinnall 12th Jul 18, 8:44 AM
    • 21,418 Posts
    • 17,234 Thanks
    • #2
    • 12th Jul 18, 8:44 AM
    • #2
    • 12th Jul 18, 8:44 AM
    I think you need to ask your ex-employer, it's not likely that your PILON has been taxed twice as the net amount after tax on 13,786.50 would be a lot lower than 11,877.60. I suspect they've just made a mistake.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,005Posts Today

7,217Users online

Martin's Twitter