Is the payment in lieu of notice - PILON - still tax and NI free? I was made redundant in December 2008, and the payment back then was tax & NI free.
Thanks.
Is Pay In Lieu of Noticet tax free?
- 22-07-10, 11:57 AM #1kevin ray
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Is Pay In Lieu of Noticet tax free?
- 26-07-10, 03:32 PM #2
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Whether payment in lieu of notice is paid tax and NI free is dependent on the contract of employment or your employer's normal practice for PILON
If your contract employment includes a clause which reserves the right to pay a PILON payment, then the payment would normally be put through payroll and subject to NI and tax deductions.
If there is no clause in your employment contract and it is not customary that your employer makes PILON payments, then the PILON would be paid NI free & tax free to the £30,000 exemption limit.Clara Buckingham
(Any advice I submit to Redundancy Forum is given in good faith without any further liability or obligation).
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