PILON late in March 2024

I received a PILON in late March 2024. So, this PILON is, in effect, salary for the end of 2023-2024 and some of the coming weeks in 2024-2025. Is it possible to allocate the PILON across tax years (some in 2023-2024 and the rest in 2024-2025) in my tax return? If yes, please advise where to do this in the tax return and how to calculate correctly (e.g.do I divide by how many working days it represents and then multiply by the number of working days left in 2023-24 and in 2024-2025)? If no, does all the PILON count towards the adjusted net income calculation? Thanks

Hi,

No, the income is assessible in the year it is paid,for adjusted net income, please refer to:

Personal Allowances: adjusted net income

Thank you.

Thank you. -The specific case of PILON is not addressed in the advice about ANI as far as I could see, hence the question. However, I assume the answer, based on the first sentence of your reply, is that it all of the PILON counts in the ANI. --Please advise if I have misunderstood. -The PILON arriving in 2023-2024 (which mostly represents pay for 2024-2025) triggers the HIC for CB in 2023-2024. So, in effect, HMRC will be taking back some/all of the CB we already received. --Can any of this be reclaimed in 2024-2025 if I have no employment income for the period covered by the PILON for 2024-2025?

Hi Crsdai7

PAYE income is taxable in the year it is paid so the PILON will be assessable in 23/24 and you cannot claim this in 24/25.

Thank you

Bringing this back to life - if I have no taxable income in the year following my PILON, can I claim back any of my tax for the prior year? Currently on track for a significant tax liability followed by a period of unemployment!

Hi ,
 

No as the payment is taxable in the year it was paid . Thank you .