PILON making pay go over £100k (funded hours)

[SpringSe]

Has anyone got advice or experience of PILON for redundancy making the tax year taxable earnings go over £100k? Normal salary for the year doesn’t tip it over. Ideally not wanting to put a chunk in pension as we don’t know how long unemployment may last and will need the funds, equally need to keep the place at nursery…

We had just reconfirmed for the period before the at risk came, still currently employed but employer may be looking at end date in Feb.

Is the situation such that you could discuss with your employer the option of making some or all of the PILON payment in April payroll?

Additionally, check your contract. Most employers give themselves the option to pay in lieu of you coming in but not necessarily to do so as a lump sum at their choosing. ETA so you are effectively on gardening leave

When is your last day at work per your settlement agreement?

Hi, TBC at the moment, possibly mid to end of Feb. Could be SA or redundancy but either wouldn’t make a difference as PILON is the route the employer is looking at.

Sorry about the delay in coming back to you. The most common way to reduce your gross pay is via salary sacrifice. One way of doing this is through your employee pension contributions with a one-off lump sum single contribution. This would mean forgoing the money in your final pay, but it would boost your pension pot if you have one. If you do this, you will need to make sure it is a salary sacrifice scheme and not a net deduction scheme.

Thanks. It is a SS scheme and we do this already. We wanted to ensure maximum funds at this point rather than divert a chunk to pension.

Employer were happy with garden leave in the end so that’s what we’ve gone for.

thanks all for your advice!