Payment in lieu of notice (PILON)

Nero

Nero

Well-known member
This board is full of switched on people.

Is anyone expert on tax law regarding PILON? I'm being made redundant and my employer will pay PILON instead of us working the notice. I'm trying to work out how much tax I'll pay on that. I've read something called Post Employment Notice Pay (PENP), but the calculations are a nightmare!

Will I pay normal income tax and NIC plus be hit by the formula in PENP? Or, will the tax only by through PENP?
 
Thanks mate, but a sign of the times. I'm not the only one, but hopefully it works out.
 
Sorry to hear your news and good luck going forward. I can’t answer your question but redundancy was £30k tax free limit but I believe it is taxed now. I would imagine at normal income tax rate.
 
El Guapo said:
Sorry to hear your news and good luck going forward. I can’t answer your question but redundancy was £30k tax free limit and bough I believe it is taxed now.
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Thank you. Redundancy is pretty straight forward compared to PILON! Anything above 30k is taxable.
 
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