2 articles tagged with Garden Leave Tax uk.
Garden leave pay is taxable as employment income -- but the interaction with PILON and the PENP formula affects how tax is calculated on termination packages.
Yes — notice pay is taxable employment income in almost all cases. Whether your employer asks you to work your notice, pays you in lieu (PILON), or puts you on garden leave, the payment is subject to income tax and NI. Here's how it works.