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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 64712
Experience:  Qualified Employment Solicitor
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I was due to start a new job on 6th April but the employer

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Hi,
JA: Hi. How can I help?
Customer: I was due to start a new job on 6th April but the employer has withdrawn the offer because of coronavirus and the uncertain economic position. They said they will pay me one month in PILON. From my research it seems clear that this is taxable when an employee is already working at the employer, but because I haven't yet started does the same apply?
JA: Was this discussed with a manager or HR? Or with a lawyer?
Customer: HR
JA: Does the workplace operate with employees, freelancers, consultants, contractors or with unionised employees?
Customer: EMPLOYEES
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no I don't think so.

Hello, I’m Ben, a UK lawyer and will be dealing with your case today. I may also need to ask some questions to determine the legal position.

Customer: replied 7 days ago.
Hi Ben

Can I just check, when did you accept the offer?

Customer: replied 7 days ago.
one moment, I'll check the exact date

OK no problem.

Customer: replied 7 days ago.
Verbally by phone, subject to agreeing salary, terms etc. on 18th Feb. in writing 25th Feb.

Thank you. I will get back to you with my answer as soon as I can, which will be at some point today. The system will notify you when this happens. Please do not reply in the meantime as this may unnecessarily delay my response. Many thanks.

Many thanks for your patience. You are extremely unlikely to be able to argue that this is not a taxable payment – it is a payment due under contract and any contractual payments are subject to tax. HMRC is certainly not going to let this one pass easily and they are not known for being lenient with tax rules!

 

I appreciate this may not be the answer you were hoping for but it is the legal position and I hope that it at least clarifies where you stand?

 

Ben Jones and 2 other Employment Law Specialists are ready to help you
Customer: replied 7 days ago.
Thank you Ben.

All the best