ill health retirement tax rate

robbiejob47 · Post by **robbiejob47** » 09 Jul 2016, 16:04

Hi
Can anyone tell me if when you are I H R do you get 34 weeks pay at before tax rate or 34 weeks at the amount we normaly get paid into the bank ie after tax,,
any help would be great,ive worked for royal mail for 38 years and im 56 and already get some pension

ted_e_bear · Post by **ted_e_bear** » 10 Jul 2016, 09:31

Hi, the 34 weeks and the pilon (prob another 12wks pay) are tax free, if you're owed outstanding holiday pay then that's taxable at normal rate.
Oh don't forget that as a good leaver you keep your full share allocation to do with as you please.

Scotland1 · Post by **Scotland1** » 10 Jul 2016, 13:57

We had someone leave through ihr a few months he got £25k incl shares don't get pilot on ill health, but I pretty sure same rules apply as to vr regarding if you get more than £30k u get taxed on it

24601 · Post by **24601** » 10 Jul 2016, 19:53

May I ask a further question on this subject ? Is it 34 weeks x basic pay or does it include allowances ? Thanks

Scotland1 · Post by **Scotland1** » 10 Jul 2016, 20:18

Basic pay

24601 · Post by **24601** » 10 Jul 2016, 20:38

Thanks xxx

robbiejob47 · Post by **robbiejob47** » 11 Jul 2016, 10:42

Hi All and thanks for your replies,,,
Scotland 1 what is pilot on ? if you dont mind me asking

Scotland1 · Post by **Scotland1** » 11 Jul 2016, 13:10

Sorry meant pilon it is payment in lieu of notice, normally 12 weeks pay you get for leaving company but in ihr terms there isn't any

Post by **spiderj** » 12 Jul 2016, 14:07

Also check your tax-ie if you're out part way thru tax year then your earnings may be below threshold -i got £200 ish back too.