As employment law solicitors, we regularly advise on redundancies and have encountered situations where employers would like to make redundancy payments, which include payment in lieu of notice (PILON). Where this occurs, it is normally stated in a compromise agreement that part of the redundancy pay is for notice pay. We would like to reiterate […]
Entries Tagged as 'Tax'
Employment Law, Redundancy, Payment in Lieu of Notice, Tax, National Insurance
April 10th, 2012 · 2 Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, National Insurance Contributions, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
Tags: employment law·National Insurance·Payment in Lieu of Notice·Redundancy·Tax
Employment Law, Redundancy, Compromise Agreements, Payment in Lieu of Notice, Tax
March 16th, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Contract of Employment, Employment Lawyers, Employment Solicitors, HMRC, Independent Legal Advice, Payment in Lieu of Notice, Redundancies, Redundancy, Redundancy law, Redundancy Pay, Taxation
When advising employees on their redundancy rights and the terms of their compromise agreements, we are seeing situations where employers are including payment in lieu of notice (PILON) in employees’ redundancy payments. Any PILON is taxable and an employer does not have to make a PILON unless there is a provision in the employee’s employment […]
Tags: Compromise Agreements·employment law·Payment in Lieu of Notice·Redundancy·Tax
Employment Law, Indemnity, Tax, Compromise Agreement
January 11th, 2012 · No Comments · Compromise Agreement Solicitor, Compromise Agreement Solicitors, Compromise Agreements, Employment Lawyers, Employment Solicitors, HMRC, Indemnity, Independent Legal Advice, Redundancies, Redundancy, Redundancy law, Taxation
The issue of redundancy tax can be a confusing one. Compromise agreements usually contain tax indemnities, meaning if Her Majesty’s Revenue & Customs (HMRC) makes claims for penalties from an ex-employer, the ex-employee has to indemnify the ex-employer for any taxes due. This would apply if for example, there has been a miscalculation of taxes […]