How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3814
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I am being made redundant and I have a PILON payment (Pay in

Resolved Question:

I am being made redundant and I have a PILON payment (Pay in lieu of notice) of 12 weeks that straddles the tax year.
Since this payment is for a notice period in the next tax year, can I assume the payment that covers my notice in the next tax year should be considered to be in next years tax payments, and not this years.
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I have been told my termination date could be 2nd March. but PILON would not turn up until April pay-roll.
Customer: replied 1 year ago.
if I had 3 months pilon, could I arrange to have 'garden-leave' until 6th April to get a 2016/2017 termination date and PILON for the rest. Would that be a better idea.?
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. If you have no contractual right to PILON then the payment may well be tax free as damages for dismissal. PILON would be taxed normally through PAYE on the date of payment so if you do not receive it until after 5 April 2017 it will be taxed in the 17/18 tax year. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
Thank you. That is precisely what I was hoping for.***** *****g
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance, David. Just make sure that the payment is made after 5 April! Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 1 year ago.
Would like to rate you, but the stars are not working.
Expert:  bigduckontax replied 1 year ago.
I will have to wait until they are!
Expert:  bigduckontax replied 1 year ago.
My error, I forgot to tick the ratings box, silly me!
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your excellent support.

Related Tax Questions