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This petition was submitted during the 2019 to 2024 Parliament

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Closed petition Exempt payments in lieu of notices from income tax and national insurance

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When an employee is made redundant some employees redundancy packages award them Payment In Lieu Of Notice, which provides the employee with a number of weeks/months of salary, along with their redundancy payment, currently this is subject to both Income Tax and National Insurance

This salary payment is a safety blanket for many people and in light of the COVID pandemic should be exempt from both NI & Income Tax, to give those families going through the pressure of redundancy some comfort and time to find new work, in a depleted job market.

For example; someone earns £24,000 pa and has a 3 month PILON in their contract, they would be entitled to £6,000 PILON payment, currently subject to 20% Tax & 11% NI, deducting ~£2,000 from their redundancy package. This should change.

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    This petition will stay open until 30 January 2021.