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

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

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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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