Is IHR taxed?

iamchopski · Post by **iamchopski** » 18 Apr 2018, 10:55

Can anyone tell me please are the ill health lump sum and the pay in lieu of notice payment taxed? Thanks.

stevenshm · Post by **stevenshm** » 18 Apr 2018, 12:13

As of 6 April this year
the Pay in lieu (PILON) Part of the settlement is subject to income tax and national insurance
the lump sum part is still tax and national insurance free

It is a change in the tax rule not royal mails fault

iamchopski · Post by **iamchopski** » 18 Apr 2018, 12:17

Thanks, probably won’t get mine till next month so will get clobbered.

stevenshm · Post by **stevenshm** » 18 Apr 2018, 14:52

I know the feeling my last day was the 07/04/18
it was a surprise to me when i got the payment and
phoned HR to be told PILON was now taxable

Ha! But nevermind thats life

Post by **wen2202** » 19 Apr 2018, 14:55

Yes, read this thread this morning, broke my soul it really did!

Received wage slip with IHR, PILON, PILOAL.

Tax of £2489.05!, some chuffers got this wrong, taxed at 40% .
I swear i’ll Swing for the next person who says “you’ll get it back”

Claims gone in to HMRC as i’m on sick and ESA was stopped due to me being “fit” for work so no money coming in.

mark.cup · Post by **mark.cup** » 19 Apr 2018, 16:46

In this day and age the taxman just assuming that's your weekly or monthly pay every pay period for the rest of the year is a joke!

Why can't they have a system where payroll can attach a marker showing its a one off rather than people chasing them up and waiting God knows how long...

Post by **David walters** » 19 Apr 2018, 17:43

Same happens to me after I finished on I’ll health they paid my holidays they owed me and taxed me 1500 they put me on emergency tax code so I can’t gt it bk now tell end of nxt tax yr