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Posted Mon, 15 Jul 2024 11:41:18 GMT by towerleaze
I have a question I need help answering please, as I can't understand the payment I've received. I have received a pay off from my employer to leave the company. (a) £11,250 (eleven thousand, two hundred and fifty pounds) less income tax and national insurance constituting the Employee’s Post-Employment Notice Pay (the PENP);(b) £8,575 (seven thousand, five hundred pounds) as an ex gratia payment as compensation for loss of employment inclusive of any statutory or other redundancy payment to which the Employee may be entitled (the Compensation Payment).T he first £30,000 of the Compensation Payment will be paid without deduction of income tax and national insurance on the basis that the Company believes it is a payment pursuant to Sections 401 to 405 of the Income Tax (Earnings and Pensions) Act 2003 although the Company makes no warranty to this effect. As such, I believe that the £8, 575 is without deduction, and income tax and NI etc. will only be deducted on the £11,250. My question is, after the deductions, how much should I receive in total?
Posted Thu, 18 Jul 2024 14:36:20 GMT by HMRC Admin 20 Response
Hi,
Please use the income tax calculator to calculate income tax.
Check your Income Tax for the current year
Thank you.

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