Payment in Lieu of Notice Changes

As from 6th April 2018, all ‘payments in lieu of notice’ (PILON)  including bonuses, commission or incentive payments will be treated as earnings and subject to tax and employees/employers NIC  and will no longer be eligible for to the £30,000 Income Tax exemption.

This is irrespective of whether there is a PILON clause in the contract of employment. 

 

 

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