Tax on payment in lieu

[Floofydawg]

Starting a new thread as I had tried to get advice on someone else's thread.

My salary is £55k pa. I'm due to get a PILON payment of just over £12k and am worried I will get taxed at 40% on all of it. My employment will be coming to an end and I don't have another job lined up. Is there any way of ensuring I pay the correct amount of tax on the lump sum?

It is taxed the same as regular earnings.

If it turns out that you overpay on tax you will get a tax rebate.

Unfortunately yes it's fully taxable. But you will likely get a refund as presumably it won't take you over the 55k?
You can speak to HMRC to ask about it or your payroll department. Depending on your situation there are things they can do.

Thanks, I understand it's fully taxable but I don't know at what rate. My taxable earnings for this tax year so far are showing as just over £30k. I can't afford to wait until after the tax year is over as the difference could be 1000s.

I'd call HMRC and discuss it. Your company can only do what the tax code tells them and given your usual salary it's likely to be taxed at 40%.