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If redundancy and other compensatory payments exceed 30,000 what tax and NI implications are there?

April 26, 2017Compensatory exceed implications Ni PAYMENTS redundancy tax

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If redundancy and other compensatory payments exceed 30,000 what tax and NI implications are there?

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Whether the payment is redundancy or a PILON (Payment In Lieu Of Notice) or a mix of both any amount exceeding 30,000 will be subject to tax and national insurance in the normal manner. A PILON payment is made to compensate for a breach of contract and is not normal notice pay i.e. pay whilst serving notice.