Hi,
I maybe made redundant soon and if so my package will be approx £45,000 compensation for loss of office plus 3 months PILON.
I know that I will pay both tax and national insurance on the PILON (plus holiday pay) but on the £45,000 will I pay national insurance on the £15,000 that is over the redundancy tax free amount?
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Redundancy pay and national insurance
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- Lemon Quarter
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Re: Redundancy pay and national insurance
The answer appears to be straightforward here: (https://www.gov.uk/staff-redundant/redundancy-pay)
Tax
Employees who’ve been made redundant only pay tax on payments over £30,000. They do not pay any National Insurance.
Tax and National Insurance are deducted from other termination payments, for example payment in lieu of holiday or notice.