2 articles tagged with Pilon Tax uk.
PILON is fully taxable as normal employment income, unlike some other elements of a leaving package. Here's exactly how PAYE and NI apply, and how PILON interacts with the £30,000 tax-free termination payment exemption.
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.