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bigduckontax, Accountant
Category: Tax
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I am being made redundant and I have a PILON payment (Pay in

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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.
Customer: replied 2 years ago.
I have been told my termination date could be 2nd March. but PILON would not turn up until April pay-roll.
Customer: replied 2 years 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.?
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 2 years ago.
Thank you. That is precisely what I was hoping for.***** *****g
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 2 years ago.
Would like to rate you, but the stars are not working.
I will have to wait until they are!
My error, I forgot to tick the ratings box, silly me!
bigduckontax and 2 other Tax Specialists are ready to help you
Thank you for your excellent support.