Notice period taxed - is this right ?

Hi there
I have been made redundant .....I am not working my notice period ? but should it be taxed ?? There is no reference payment in lieu of notice in my contract ? Friends who have been redundant in the past have not had their notice period taxed ? Can you advise ???
Thanks
Michelle

There isn't a clear answer. PILON which is not contractual does not need to be taxed - technically. But HMRC don't like it and some employers tax it to be sure they don't fall foul of the regulations - HMRC can be like piranha if they smeall blood if they find even the smallest discrepancy. But equally - just because you are getting PILON does not mean you are entitled to be paid your gross wage - still more employers keep the "tax" - they are only obliged to pay you the net amount of salary, not the gross. The bottom line is that either way you have no right to that other money. Had you continued in employment you would never have seen it, and being redundant doesn't change that, PILON or not, I'm afraid.

Oh dear !! I thought otherwise ........there are lots of threads that 'imply' that it is not taxable....and lots that imply it is. Thank you for your response anyway........

Sorry but there are lots of threads that are wrong. It isn't "not taxable" - PILON is a tax free allowance (provided it falls within the rules) which is an entirely different thing. It still means that you get a tax benefit in that this payment is not counted as income at all - the eyes of HMRC it does not exist (although they are constantly working on ways to make it reappear!). But it is a myth that employees are entitled to the gross amount and that it is not taxable - some employees are lucky enough never to find out the truth. For them it might amount to the same thing, but what is happening is actually something totally different that what they think is happening!