PILON / PENP(5 Posts)
Myal Thu 09-Apr-20 20:43:02
weekfour Thu 09-Apr-20 20:45:21
Myal Thu 09-Apr-20 20:54:53
zsazsajuju Thu 09-Apr-20 22:04:21
weekfour Thu 16-Apr-20 19:31:46
To use this feature subscribe to Mumsnet Premium - get first access to new features see fewer ads, and support Mumsnet.Start using Mumsnet Premium
Hope everyone is safe and well.
I've finally finished with grievance and it wasnt upheld but its exhausted me.
I've been offered a settlement agreement which I will accept but I am confused over the PILON payment.
Employers are paying me 12 weeks but the agreement says 'the parties agree that the Pilon is equal to or exceeds the amount given by the formula in section 402 d (1) of the income tax (Earning and Pensions) act 2003 (ITEPA) and that accordingly, your Post Employment Notice Pay is nil'
Does anyone know what on earth this means? I have a meeting with my solicitor tomorrow but fear a sleepless night....does this mean my PILON calculated is nil?
Any advice would be really appreciated.
Post employment notice pay in PENP. It's a calculation about tax and your pay in lieu of notice. PENP being zero is a good thing for you as it means you pay less tax.
Week four, thank you.
The entire settlement is made up of 4 elements; redundancy, ex gratia, PILON and accrued holiday as I've been off sick for a few months.
Would you know which is taxable? And which the nil PENP applies to?
PILON and accrued holiday is taxable. Ex gratia payments or redundancy payments are not up to 30k.
Sorry, I didn't see your question.
But what @psaz says.