Originally Posted by
Andy D
Yup, Pay in Lieu of Notice (PILON) is taxable in the UK
I wouldn't have too much issue with the tax on PILON, it is Pay of a sort after all, what gutted me last year was the £525/week cap applied. So you get less than half your pay rate and it's taxable and they take off any Job Seekers allowance you might be getting at the time too. This is repayable, and the tax on PILON will probably be recoverable from HMRC if still unemployed next year, but the system is well and truly rigged against the better paid. T'aint that way in Germany. Much better treatment.